China completes first Yuan-settled LNG trade

China completed its first purchase of liquefied natural gas (LNG) using cross-border Yuan settlement. It comes amid rising acceptance of the Yuan in the international market.

China National Offshore Oil Corporation (CNOOC), the largest offshore oil and gas producer in China, purchased a shipment of LNG from TotalEnergies through Shanghai Petroleum and Natural Gas Exchange (SHPGX), according to the official WeChat account of SHPGX.
The transaction was completed in cross border Yuan settlement and the transaction volume was about 65,000 tonnes. The LNG is sourced from the United Arab Emirates.
The deal, which marks the first international LNG transaction settled in Yuan, is a meaningful attempt to promote multi-currency pricing, settlement and cross-border payment in international LNG trading, said SHPGX Chairman Guo Xu. It also provides a new channel for international players to participate in the Chinese market, helping to build a new pattern of dual circulation in China.
Moreover, China and Brazil have also reached a deal to trade in their own currencies, ditching the US Dollar as an intermediary, the Brazilian government said, Beijing’s latest salvo against the almighty greenback. 

Based on the materials of www.globaltimes.cn