International LNG Developments – Singapore

Singapore SLInG

For liquefield natural gas (LNG) suppliers or purchasers following the travails of the oil markets and wishing to reduce the tie-in of LNG prices to oil indexes (a particular issue in Asia), the relatively recent addition of the Singapore SLInG (Singapore Exchange LNG Index Group) spot index may be a useful tool. The SLInG, which shares the name of Singapore's most famous drink, is quoted free-on-board offshore Singapore, relying primarily on the quantity of LNG carried via the Strait of Malacca and/or the South China Sea past Singapore waters, rather than on the much smaller volumes actually offloaded or stored there.

For anybody drafting pricing clauses, the official information sheet specifies that the index is quoted weekly, on the first business day of the week, by 8 p.m. Singapore time, relating to deliveries during the next calendar month or the month after (the index quoted up to the 16th of the month will relate to deliveries during the