Slow going for creating LNG trading hub in Asia
While liquefied natural gas sellers across the world are giddy over the high prices paid in Asia, the region’s buyers are brainstorming ways to lower the cost of the expensive, but necessary, fuel.
One idea drawing interest calls for setting up a regional trading hub that could weaken LNG’s historic link to oil prices by giving sellers and buyers a marketplace where supply and demand determine price.
Important questions have yet to be answered: Where would a hub be located? Will governments in Asia allow the gas market to function unfettered? Would a critical mass of sellers and buyers participate? And how long before meaningful change occurs?