Trading volumes poised to grow over the next few months as IEG Malta gains access to markets west of the Suez Canal
SINGAPORE and VALLETTA, Malta, March 18, 2016 /PRNewswire/ -- New Silkroutes Group Limited ("NSG" or "the Group") said today its joint venture with Malta's Ministry of Energy has completed its first cargo trade, bringing the Group another step closer to its goal of becoming a leading international oil and gas trader.
Concluded today, the trade was carried out by IEG Malta Limited ("IEG Malta"), which is 90% held by NSG's wholly owned subsidiary International Energy Group Pte. Ltd. ("IEG") and 10% by Malta's Ministry of Energy. The joint venture was formed in 2015 with a mandate to develop Malta into an energy trading hub between Asia and Europe.
IEG Malta expects its physical trading volumes to increase in the coming months as it gains access to markets west of the Suez Canal. IEG's own average monthly trading volume has quadrupled over the past two quarters.
The completion of the cargo trade comes a month after IEG made its first electronic trade in Asia using Platts' signature Market-on-Close price-discovery process, which uses bids, offers and transactions from traders to assess prices of crude oil and related products.
In line with the Group's commitment to expand its oil and gas trading business, NSG's management passed a resolution in early March to increase IEG's paid-up capital from S$10.00 million to S$34.69 million. Beyond energy trading, IEG -- through IEG Malta -- is also keen on managing, financing and even owning oil storage facilities and terminals.
Mr. Artun Gursel, book leader for IEG, said: "We see oil and gas markets continuing to grow in size and complexity. Just as China's 'One Belt, One Road' initiative is designed to boost connectivity and cooperation between Europe and Asia, we believe we can play a key role in bringing both continents closer together as we develop Malta into the Mediterranean's preferred energy trading hub between these two continents. Our goal is to bring mission-critical supply to Europe and the Mediterranean. Being able to do this successfully will mean increased market liquidity and reliable supplies for the region."
Oil and gas trading and investments are part of a strategic shift for NSG following its exit from the SGX Watchlist in November 2014.
About New Silkroutes Group Limited
New Silkroutes Group (Bloomberg: NSG SP) is a Singapore-incorporated company (established on 25 Jan 1994) listed on the Mainboard of Singapore Exchange Securities Trading Ltd (SGX). It is evolving into an investment holding company with core competencies in Capabilities Enablement, Capital Allocation, and (Policy) Analysis. The Group, through its subsidiaries and associate companies, has exposure to key sector verticals, including energy/resources, healthcare, and infocomm technology with a focus on security & governance.
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SOURCE New Silkroutes Group Limited