SINGAPORE: Singapore is ramping up efforts to become Asia's hub for liquefied natural gas (LNG).
Temasek Holdings LNG unit, Pavilion Energy, says it wants to raise its investments in infrastructure and assets, with the aim of trading LNG in Asia within the next three months.
Already Asia's energy hub, Singapore has big ambitions to become the go-to market for LNG in the Asian region.
Pavilion Energy, set up by Temasek Holdings in April this year, wants to tap soaring Asian demand for energy.
The company is set to increase funding to its initial authorised capital of S$1 billion and invest in LNG infrastructure, terminal and assets in Asia.
Seah Moon Ming, CEO of Pavilion Energy, said: "I can say with confidence that Singapore will devote itself into a major LNG trading hub soon in the region. I believe we have what it takes to attract growing LNG volume into Asia, and will be in a position to set LNG prices in the region."
According to the International Energy Outlook 2013, natural gas is the world's fastest-growing fossil fuel.
Global demand is also keeping pace, and is expected to soar 64 per cent by 2040, compared to 2010 levels.
In line with economic growth and increasing wealth, developing Asia is expected to account for much of that demand, led by China, India and Southeast Asia.
Mr Seah highlighted the need for cross-border collaboration to tackle global energy issues.
"We value long-term international partnerships that will build new markets, enhance shipping logistics and regasification facilities. We shall support innovative processes and technology that enhance production, storage, delivery and trading."
Gaurav Tiwari, president of VGS Cavallo Energy Group, said: "I think that's the right way to deal (with LNG), to have not only the downstream or market focus, but to have the global LNG portfolios - companies like Pavilion. India being there comes under the Asian region too. We will look forward to work with companies like Pavilion where there is a global exposure on the projects we are developing."
In 2012, the Asia Pacific accounted for 70 per cent of total global energy trade.
Singapore commissioned its first LNG cargo in March this year.
Commercial operations at the three million metric-ton-a-year terminal on Jurong Island began in May while the completion of a third tank is expected in 2014. This will expand its capacity to six million tons.
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