Abstract
Asia remains the last net importing region without a gas hub or a representative gas price. However, increased market liquidity and more transparent pricing presage the development of hub-based trading in the region. This paper assesses three potential locations for an Asia Pacific gas hub, considering for each location the critical enabling factors of infrastructure, markets and regulation. We suggest that an Asian gas hub will evolve, but as a tripod, with: (1) an active contract trading hub in Singapore; (2) a secondary physical hub for volume storage and transfer in Tokyo harbour; and (3) a tertiary balancing point as the ultimate price arbiter in Shanghai. We do not expect this Asian hub to mature fully until the mid-2020s. However, we do see many of the crucial elements already emerging.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
