CWC caught up with Seng Kee Wong, Head of Marketing, GLX ahead of the 3rd China LNG & Gas International Summit & Exhibition.
- What are the main benefits that your platform could add to the LNG market?
GLX: GLX is creating a global LNG marketplace connecting all sellers, buyers and traders. The 3 key benefits GLX will deliver to our members are (i) faster and simpler LNG spot trade execution, (ii) increased compliance and (iii) better pricing outcomes.
- How do you think LNG suppliers could better adapt their offer to satisfy the flexibility needs of Asian buyers?
GLX: GLX believes a mix of long term and short term/spot is required for a healthy LNG market. For the spot/short term market to complement the long term deals, it needs to be as flexible, easy to execute to reflect prompt market and demand-supply changes; and free of restrictions as reasonably possible.
- As long-term contracts expire, what level of LNG supply will be bought long-term vs spot/short-term over the 5-10 years?
GLX: GLX’s view is that over the next 5 to 10 years the balance of long term to spot/short term will be around 50/50. It is important for future greenfield projects that their remains a healthy allocation to long term contracts. The LNG market is heading towards more liquidity with new LNG supply from US and lower recontracting from expiring LT contracts, spot/short term trade will increasingly take a larger share of the pie.
- What is the role of China in Asia LNG trading? Do you see the country becoming the main LNG Hub in the region?
GLX: As gas will take a larger share of primary energy mix, and resulting strong growth prospects in LNG, China can play a key role in LNG trading. The number of LNG terminals in China coupled with downstream demand position, China has the potential to be a leader in the global LNG trade. For that promise to be realised, regulatory regime in China for LNG imports will need to encourage more private participations, clear rules for third party access etc. If China’s spot demand is high enough to generate reliable and transparent price signals, then China could certainly become a major LNG hub.
- This is your first time participating at The CWC China LNG & Gas International Summit & Exhibition. What are you most looking forward to at the summit?
GLX: connecting with our friends in the LNG industry and sharing the GLX story with parties that have not heard of us yet. We are confident of our platform and value propositions will encourage many adoption in China.
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