China's first LNG cross-border CNY settlement transactioncompleted

According to Shanghai Oil and Gas Trading Center On 28 March, 2023, China National Offshore Oil Corporation (CNOOC) and Total Energycompleted the first domestic purchase transaction of imported liquefied naturalgas (LNG) settled in CNY through the platform of Shanghai Oil and Gas TradingCenter, with a trading volume of about 65,000 tonnes.

Shanghai Oil and Gas Trading Center stated that as amajor event in China’s oil and gas market reform, it is a beneficial attempt for the center to carry out CNY settlement of oil and gas trade, which isconducive to international resource traders to participate in the Chinesemarket, provide new channels, and promote the docking of international anddomestic markets.

Guo Xu, Chairman of Shanghai Petroleum and Natural GasTrading Center, said that this first international LNG transaction settled in CNY is an attempt to promote multi-currency pricing, settlement, andcross-border trading after the trading center launched the international LNGtrading business in Aug. 2020. In the future, the trading center will take theinitiative to connect with international resource providers, strengthen theconstruction of financial infrastructure for cross-border CNY settlementbusiness, and provide more convenient channels for the full circulation ofdomestic and international oil and gas resources.