China Completes Landmark LNG Gas Trade in Yuan, Ending US Dollar Dominance

A seismic shift is underway in the global energy market. China completed a historic landmark deal to settle the first international Liquified Natural Gas (LNG) trade using local yuan, signaling a move away from the long-standing reliance on the US dollar. This marks a significant step towards dedollarization and strengthens the yuan's position in international trade.

The groundbreaking transaction involved Shanghai Petroleum and Natural Gas China and France in a deal hailed as a turning point for energy commerce. The impact extends far beyond this single trade, suggesting a broader strategy to reduce dependence on the US dollar for crucial resource procurement.

Reports confirm that Chinese national oil company CNOOC and French energy company Engie have completed a yuan-settled liquefied natural gas (LNG) trade through the Shanghai Petroleum and Gas Exchange. This successful execution demonstrates the viability of alternative currency settlements for major energy transactions.

This LNG gas trade using the Chinese Yuan in a landmark transaction that ends the reliance on the US dollar in energy trades has profound implications for global finance. It provides other nations with a viable alternative to the dollar, potentially reshaping the geopolitical landscape and impacting the future of international trade.

Analysts predict that this is just the beginning, with more countries likely to explore yuan-based settlements for energy deals, further diminishing the US dollar's dominance in the global energy market.