China finalizes historic LPG agreement in yuan currency

The Shanghai Petroleum and Natural Gas Exchange announced on Tuesday that the China National Offshore Oil Company (CNOC) and France’s Total Energies have completed the first yuan-denominated liquefied natural gas (LNG) deal.

The Shanghai Stock Exchange said in a statement that the deal included about 65,000 tons of LNG imported from the UAE, offering a new channel for international resource traders to enter the Chinese market.

In recent years, China has focused on settling oil and gas deals in yuan in an attempt to consolidate its currency internationally and reduce the dollar’s dominance in world trade.

According to Stock Exchange Chairman Guo Xu, the first international CNY-settled LNG deal promotes multi-currency pricing, cross-border settlements and payments.

He said the exchange will actively engage with international resource traders and promote the creation of a financial infrastructure for yuan settlements, while expanding digital trading opportunities to provide more convenient channels for domestic and international oil and gas resources.

Source: China Daily website

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