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China starts trial run of online international LNG trade

Business Saturday 29/August/2020 17:03 PM
By: Times News Service
China starts trial run of online international LNG trade
Shanghai: Shanghai Petroleum and Natural Gas Exchange (SHPGX), a national energy trading centre, started the trial run of its online platform for international liquefied natural gas (LNG) trading on Friday.
China's oil giants Sinopec and CNOOC respectively reached LNG purchase deals with their foreign counterparts through the trading platform, with total trading volume at 130,000 tonnes.
Given China's market size and weight in the sector, China is well placed to establish a liquid and relevant market for LNG, said Laurent Vivier, president for the gas division of Total.
As China's largest LNG importer, CNOOC will actively participate in the online trading, and will support more domestic new players in the natural gas sector to enter the international market, said Wu Wenlai, chairman of CNOOC Gas and Power Group.
With the establishment of the national oil and gas pipeline company China Oil & Gas Pipeline Network Corporation (PipeChina), China has accelerated market-oriented reforms over its oil and gas market, creating favourable conditions for the launch of the online international LNG trading business, noted Ye Guobiao, chairman of the SHPGX.
SHPGX will seize the opportunity and make use of digital technology to build an open, transparent, safe and efficient online trading platform for the market players at home and abroad, added Ye.