CNN: Natural gas backed as Asia's fuel for the future

Singapore’s strategic position at the mouth of the Strait of Malacca – one of the world’s critical energy chokepoints – has always meant the resource-poor city state has occupied a special place in the world of geopolitics.

Almost all of East Asia’s oil supplies must pass through the narrow shipping strait making Singapore one of the world’s busiest ports, but also vulnerable to shifts in the region’s energy mix.

The recent unrest in the Middle East – which has some analysts saying that $100 per barrel is likely to be the default benchmark oil price for some time to come - has demonstrated to Singapore that its energy security hinges on reducing its exposure to price and supply risks.

With gas from Indonesia’s East Natuna fields in plentiful supply, Singapore is backing gas as Asia’s fuel of the future – and it is plowing serious money into making sure it has the infrastructure to become one of the world’s most important shipment hubs for liquid natural gas (LNG). MORE