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Singapore Prime Minister Lee Hsien Loong

Singapore has announced plans to build a second LNG terminal in hopes that the long term strategy will make it Asia’s preferred LNG trading hub.

At the opening ceremony of the country’s first terminal on Tuesday, Prime Minister Lee Hsien Loong announced that the government had begun scouting possible sites for the second terminal.

Singapore’s first terminal has capacity to handle about three times as much LNG as Singapore consumes, said the Prime Minister.

Recently, Asia has overtaken Europe to be the world’s largest LNG importer, accounting for 46 percent of global trade.

The International Energy Agency has previously cited Singapore as the most well placed terminal to be Asia’s LNG hub.

Singapore currently generates more than 90 percent of the county’s electricity using LNG.

“We are preparing for the possibility that our demand for natural gas may one day be met entirely by LNG,” Prime Minister Lee said.