“The futures could be launched on the Shanghai Futures Exchange (ShFE) as soon as February, Reuters reported on Friday, quoting sources familiar with the plans.”
“The Shanghai Futures Exchange has sought for years to launch yuan-denominated futures of key commodities, including LNG and nickel, to seek a role for China in the global pricing of the major Chinese commodity imports.”
“Major LNG traders and Middle Eastern exporters are likely to be interested in a yuan-denominated LNG contract, according to analysts.”
“New LNG export projects coming online and ramp-ups of recently commissioned facilities are expected to drive a 10% jump in global LNG supply this year. This, in turn, is set to incentivize additional demand, especially in Asia, where buyers have become more price sensitive to LNG imports, according to the analysts.”
https://oilprice.com/Latest-Energy-News/World-News/China-Moves-to-Price-LNG-in-Yuan.html
See also: China to offer LNG futures as soon as next month, sources say
“Cutting out dollars with yuan-denominated contracts tallies with comments from investment bank Morgan Stanley on Wednesday about U.S. policies creating a “multipolar world” and eroding the dollar’s status as the currency of trade.”
“Meanwhile, China will be able to nurture financial markets around LNG. With the new contracts being yuan-denominated, banks can commoditise the risk by issuing yuan-denominated LNG-linked loans, repurchase agreements and asset-backed securities.”