China’s CNOOC and Thailand’s PTT complete yuan-settled LNG deal

CNOOC’s gas and power unit revealed this deal with PTT International Trading (PTTT) in a statement on Monday.

However, CNOOC Gas & Power did not provide further details regarding the transaction.

The company said this deal strengthened cooperation between China and Thailand’s state-owned oil and gas companies and facilitated the development of cross-border yuan settlement between both sides.

Thailand imports LNG via two import terminals operated by PTT.

These terminals include the first Map Ta Put LNG terminal (LMPT 1) with a capacity of 11.5 mtpa and the second Map Ta Phut LMPT2 LNG terminal, also known as the Nong Fab LNG terminal, with a capacity of 7.5 mtpa.

This deal follows at least three yuan-settled transactions CNOOC wrapped up last year.

In March 2023, CNOOC and France’s TotalEnergies completed China’s first yuan-settled purchase of LNG via the Shanghai Petroleum and Natural Gas Exchange.

The LNG cargo of some 65,000 tonnes was sourced from the United Arab Emirates.

After that, CNOOC and Singapore’s Pavilion Energy completed an international LNG trade settled in yuan in August, marking the first international LNG sale transaction settled in yuan.

Under this deal, CNOOC Trading (Singapore) supplied a cargo of 65,000 tonnes of LNG to Temasek’s unit in Hong Kong.

In addition, CNOOC and France’s Engie also finalized an international LNG trade settled in yuan under which Engie supplied a cargo of 65,000 tonnes of LNG to CNOOC.