With the continued growth of global LNG trade, and the increased movement away from long term contracting to spot contracts - the timing for Abaxx’s LNG futures contract is perfect. Also, I believe the location of the Abaxx exchange in Singapore provides important advantages.
Here are a few factors that make Singapore well suited to serve as an LNG trading hub in the Asia-Pacific region.
1. Singapore has already established itself as a regional financial and commodity trading center.
2. Singapore provides an open/pro-business regulatory environment.
3. Singapore is perfectly positioned geographically to serve as a regional LNG trading hub considering the region’s LNG needs are primarily supplied by Australia, Qatar, Malaysia and Indonesia.
4. The Singapore LNG terminal provides the infrastructure necessary to support a physically delivered LNG futures contract, and has been expanded continually since its launch in 2013. There is also an additional LNG terminal that will be built out in Singapore over the next 5 years or so.
Given the factors outlined above, and the high caliber team leading Abaxx, I am looking forward to watching this company grow over the coming years.