Singapore can play a role in forming a neutral price for liquefied natural gas in Asia, much as it already does in commodities such as oil, rubber and iron ore, said International Enterprise Singapore chief executive Teo Eng Cheong.
This is especially so as "bright sparks" are beginning to emerge amid the slump in global LNG prices, including a more liquid market for trading, he noted.
Teo said in his keynote address at the Gastech energy conference at the "Singapore Expo" on Tuesday: "To support trading, you will need to have a good price-discovery mechanism.
"An Asian LNG price will be helpful despite the reduced tension and pressure because of the Asian premium phenomena in the past."
He hopes that the SGX LNG Index Group (SLInG), a new weekly LNG spot price index, will evolve to become "the Asian LNG price" over time.
The SLInG index, which is derived using submissions from about 20 global industry players who offer their assessments of LNG prices, was launched by the Energy Market Company and the Singapore Exchange (SGX) on Tuesday.
SGX derivatives head Michael Syn said Singapore had "many of the right ingredients" for the creation of a vibrant LNG marketplace, such as its strong network of traders and supportive infrastructure.
"Today, it's a relatively opaque market. The thing that we're trying to contribute is some visibility as to what the price is," Syn said.
"If the industry believes that through this process they can create a price for Asian LNG that is independently formed - not linked to oil, for instance - you will get a market where you can confidently buy or sell or hedge LNG."
The formation of the index, he added, brings Singapore a step closer to fulfilling its aspiration of becoming a regional LNG hub as well.
BG Group chief executive Helge Lund, who also gave a keynote speech, acknowledged that "it is not a comfortable time" to be in the energy sector, given the sharp decline in commodity prices.
"But it is a moment when we have the opportunity to look afresh at what we do," he said.
He also said the drop in LNG prices was a result of the industry's "undisciplined decision-making over the past decade".
"Last year, international oil companies were spending more than twice as much as they had in 2004 to provide the same volumes of oil and gas.
"In other words, as the oil price sat mostly above 100 Singapore dollars for 10 years, the returns we delivered, as an industry, collapsed."
He said the industry's business model "needs adjusting". For instance, companies should be more disciplined in investment and project management through the commodity price cycle.
Lund remained optimistic about the global LNG business as the "fundamentals for the energy business are strong", and expected demand to grow by 4-6 per cent a year through 2025.
"More countries are starting to import LNG and multiple buyers are emerging in markets that previously lacked energy competition," he said.
"There should be no doubt LNG will have an increasingly influential role in the changing landscape of global energy supply."
http://www.nationmultimedia.com/business/CPF-guarantees-fair-benefits-to-migrant-workers-30271987.html
CPF guarantees fair benefits to migrant workers
CHAROEN Pokphand Foods (CPF) has underlined its commitment to migrant workers - especially those from Cambodia and Myanmar - who help drive the Thai economy, promising fair pay and practices for all.
More than 3,400 Cambodians work at the company's chicken-processing plants in Saraburi and Nakhon Ratchasima.
The Nakhon Ratchasima facility, located close to the Cambodian border, employs 2,300 Cambodian workers.
CPF is aware of the indispensability of the migrant workers, said senior vice president Suchart Sitthichai, who manages the Nakhon Ratchasima processing plant.
He insisted that the company adhered to non-discriminatory principles, in line with international standards which denounce all forms of exploitation - child labour, forced labour and human trafficking.
All the Cambodian workers are directly hired by CPF, with help from the Cambodian government in selecting reliable job agencies in the neighbouring country.
The selected job agencies are then subjected to verification by Thailand's Labour Ministry before they can start recruiting workers, he said.
The recruits are then transported to the border and CPF is responsible for all expenses related to work permits and health check-ups, as well as food and vehicles, he added.
They then attend a five-day training programme before starting work at the processing facility.
Dormitories are provided along with buses, free of charge, to facilitate the workers, said the executive.
Importantly, Cambodian workers are entitled to the same labour rights accessible by Thai workers, he said, adding that this includes a minimum wage of Bt300 a day, 1.5 times normal pay as overtime pay during normal working days and two times overtime pay during holidays, 30 days' sick leave, seven days' business leave and no fewer than six days' annual leave, plus social security.
Moreover, to overcome the issue of language, CPF has a Thai-Cambodian Coordination Centre at the plants, staffed with Cambodian-speaking interpreters who may be needed in case of emergency.
"Cambodian workers who are with us are able to send as much as Bt8,000 a month back to their families, which does improve their living conditions. A lot of them come from the same village," said Suchart.
CPF has been granted the highest level of Thai Labour Standard Accreditation (Thai Labour Standard 8001-2553).
"This really reflects our spirit to treat all workers under our roof on a fair, non-discriminatory standard that meets international labour practices. Ultimately, we hope to raise work standards of all our labour force at our workplace," he said.