BEIJING, Aug. 28 (Xinhua) -- Shanghai Petroleum and Natural Gas Exchange (SHPGX), a national oil and gas trading center, started trial operation of its online international LNG trading platform on Friday, bringing China’s international LNG trade business into the digital era.
Sinopec and CNOOC respectively reached LNG purchase deals with foreign counterparts through the trading platform on Friday, with total trade volume at 130,000 tonnes. CNOOC and Total struck the first deal.
“We are pleased to be part of the first steps towards an international LNG trading platform under the auspices of the Shanghai Exchange,” said Laurent Vivier, President Gas at Total said.
China is well placed to successfully establish a liquid and relevant market for LNG, given its market size and weight in the region, said Vivier. “Total fully supports the development of functioning markets and is glad to demonstrate this in a concrete way at the inauguration of this new trading platform together with our Chinese long term partner CNOOC,” he added.
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, board chairman of CNOOC Gas and Power Group.
The launch of online international LNG trade marks not only a significant step forward for SHPGX to embrace international business but also a breakthrough in upgrading its trading modes.
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 favorable conditions for the launch of the online international LNG trading business, said 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.
On Friday, a number of Chinese and foreign companies participated in the quotation on the trading platform, including PetroChina, Sinopec, CNOOC, Total, and Glencore.
China has become the world’s largest natural gas importer and the second largest LNG importer. The launch of international LNG trading business provides a cooperation platform for LNG market participants at home and abroad, which is conducive to forming new rules of natural gas trade in the era of digital economy, said Zhang Yongxiang, vice president of PetroChina International Co., Ltd.
The introduction of the new platform could help Sinopec get access to more international LNG suppliers in an efficient and convenient way so as to get more price-competitive LNG resources, said Duan Yanxiu, executive director of Sinopec Natural Gas Company.
For a long period of time, the international LNG trade is mainly negotiated between sellers and buyers and rarely carried out through exchanges. The introduction of the online trading platform will help foster competition in the international LNG market and inject vitality into the global LNG market.
In addition, with the expansion of the online trading, trading prices from this platform would work as an important bellwether for global LNG market, according to industry experts. (Contributed by Wang Haijun and Jiang Yujuan)
A single purchase
