SGX Seeks to Break LNG's Link to Oil With Singapore SLInG

Singapore Exchange introducing Asia LNG futures and swaps
Japan's Jera considering the Singapore index for contracts

The Shahamah liquefied natural gas (LNG) tanker is berthed at Tokyo Electric Power Co.'s (Tepco) Futtsu gas-fired thermal power plant in Futtsu Chiba Prefecture, Japan, on Thursday, Jan. 21, 2016. The Ministry of Finance is scheduled to release Japan fuel imports data on Jan. 25.
Photographer: Tomohiro Ohsumi/Bloomberg

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By Tsuyoshi Inajima and Stephen Stapczynski

January 25, 2016 at 12:10 AM UTC

Updated on

January 25, 2016 at 9:20 AM UTC

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Singapore Exchange Ltd. wants to break the liquefied natural gas market’s reliance on oil as a pricing peg as the city-state seeks to solidify its role as Asia’s energy trading hub.

The exchange, known as SGX, plans to launch on Monday futures and swaps linked to its index of spot prices for LNG traded in Asia. Final settlement for the contracts will be determined by average weekly assessments gathered from producers, consumers and traders in the physical LNG market.