A unit of China’s state-owned energy giant PetroChina and a subsidiary of UAE’s Abu Dhabi National Oil Co (Adnoc) have recently completed a cross-border LNG trade settled in yuan.
According to a statement by PetroChina International, the company and Adnoc Trading completed the trade via the Shanghai Petroleum and Natural Gas Exchange on April 13.
PetroChina International says this is the first cross-border LNG trade settled in yuan between China and a member country of the Gulf Arab States Cooperation Council (GCC), opening up a channel for the two parties to trade in yuan in oil and gas transactions.
The company did not provide any additional information regarding the trade.
This move follows China’s first yuan-settled purchase of LNG via the SHPGX and completed by China National Offshore Oil Corporation (CNOOC) and France’s TotalEnergies in March.
Under this deal, TotalEnergies also sourced the LNG cargo of some 65,000 tonnes from the UAE.
The UAE currently exports LNG via Adnoc’s LNG plant on Das Island with a capacity of some 6 mtpa.
Besides this terminal, Adnoc is also working on the second LNG export plant in Fujairah.
According to Adnoc, the Fujairah LNG terminal would have two 4.8 mtpa LNG trains, boosting the company’s LNG production capacity by 9.6 Mtpa, as it looks to respond to the growing global demand for natural gas.