Shell decides to be an investor in GLX Digital LNG trading firm

Tuesday, 21 July 2020
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LNG Journal editor

Royal Dutch Shell has joined Western Australian LNG operator Woodside Petroleum and Petronas of Malaysia in making a minority investment in the online liquefied natural gas trading platform GLX.

GLX was launched in the Australian city of Perth in 2016 and began trading LNG cargoes in 2017.

Branching out

The company’s name comes from Global LNG Exchange (GLX) and it is now known as GLX Digital because it is now expanding into the area of helping other firms set up their own trading infrastructure and platforms.

The GLX platform was developed in Australia by LNG industry professionals who saw the opportunity for trading to undergo a technological transformation.

Its first online cargo auctions started in 2017 and were timed for participation by buyers and sellers in Singapore and London time.

Damien Criddle, a Perth-based executive and former Shell lawyer, launched the GLX platform with other energy executives, including Rob Cole, an ex-Woodside director.

Woodside became a foundation member of GLX in July 2017 and then decided to invest in the company as did Petronas, which has a stake in the Gladstone LNG plant in Queensland.

Now, Shell has followed their lead and also taken a stake in GLX.

GLX has 75 company members signed up compared with 55 members in mid-2019, and they trade under a clearly defined framework.

Recently appointed GLX Chairman Mark Barnaba, who is also a current board member of the Reserve Bank of Australia, believes the new Shell investment validates the emergence of digitalisation across global commodity markets.

“This development is not just significant for the LNG sector, but the digitalisation of commodity markets globally,” said Barnaba. “We are delighted to welcome Shell Ventures as a shareholder, joining a growing registry of respected equity investors,” he added.

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