A boom in liquefied natural gas exports and growing demand in Asia may pave the way for a trading hub in Singapore and a benchmark price for the fuel, according to the International Energy Agency. “There is a huge, new wave of LNG projects coming to the market,� Fatih Birol, chief economist at the Paris-based International Energy Agency said in an interview in the city- state today, citing gas export plans in Australia and Papua New Guinea. “At the same time, we expect substantial growth of demand in Asia,� particularly in China and India, Birol said. The renegotiation of supply contracts by South Korea and Japan, the world’s biggest buyers, may also encourage more trade outside long-term contracts, Birol said. Most LNG is sold on a term basis, while fuel in the spot market is sold cargo-by- cargo. “Put all of them together, and I think we will see a golden age of gas in that region,� Birol said. “Therefore, there is a need for something like spot oil trading.� Singapore, the oil-trading hub of Asia, is “very appropriate� base to build LNG trading, Birol said. A spot market in the city could be developed “through 2020,� he said. To contact the reporter on this story: Ramsey Al-Rikabi in Singapore at ralrikabi@bloomberg.net To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net

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