CNOOC, China’s national oil company, and France’s TotalEnergies have completed the first trade of Liquefied Natural Gas (LNG) in yuan through the Shanghai Petroleum and Natural Gas Exchange, the exchange announced on Tuesday.
Approximately 65,000 tonnes of LNG imported from the UAE were traded, the exchange said in a statement.
TotalEnergies confirmed to Reuters that the transaction involved LNG imported from the United Arab Emirates, but declined to comment further.
CNOOC did not immediately respond to a request for comment.
Dollar comes out weakened
China has emphasized selling oil and gas in yuan in recent years in a bid to establish its currency internationally and weaken the dollar’s dominance in world trade.
Russia has increasingly adopted the yuan amid Western sanctions.
During a visit to the Saudi capital Riyadh in December, President Xi Jinping announced that China would “fully use” the Shanghai Stock Exchange as a platform to conduct yuan settlements of oil and gas trades.
Can Bitcoin Be the World’s Neutral Currency?
On the other side of the coin, Bitcoin has been positioning itself as a neutral means of payment.
As the main Western currency loses strength and distrust of the Chinese yuan continues to grow, bitcoin is emerging as an increasingly plausible and neutral alternative to govern international negotiations.
At the beginning of the war with Ukraine, the Russian Energy Minister stated that he would accept cryptocurrencies in order to be able to sell the country’s gas.
