Asia LNG swap market to be driven by smaller consumers

South Asia set to drive development of derivative market in the medium term


Energy firms wishing to enter the liquefied natural gas (LNG) sector need deep pockets. The costs required construct the necessary facilities to extract, liquefy, transport and regasify are substantial – ExxonMobil's Papua New Guinea LNG project will start production in May following a $19 billion investment by the US firm, for example.

And the timelines involved are long: each liquefaction terminal takes around four years to come online.

"Compare LNG to the Singapore fuel oil market: it doesn't