China completes 1st LNG cross-border yuan settlement deal
China has completed its first purchase of LNG using cross-border yuan settlement, state-owned China Daily reported on March 29.
State-run energy company CNOOC bought a shipment of LNG from France's TotalEnergies through Shanghai Petroleum and Natural Gas Exchange (SHPGX), the newspaper reported citing an announcement by SHPGX on its official WeChat account.
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The deal was completed in cross-border yuan settlement and the transaction volume was about 65,000 metric tons. The LNG is sourced from the UAE.
The transaction is a meaningful attempt to promote multi-currency pricing, settlement and cross-border payment in international LNG trading, China Daily quoted Guo Xu, chairman of SHPGX as saying.
Yu Jin, deputy general manager of CNOOC, said that yuan settlement can promote energy trade globalisation and build a diversified ecosystem for LNG trading.