China Plans to Offer LNG Futures in Yuan

China is planning to launch domestic liquefied natural gas (LNG) futures contracts in yuan, potentially as early as next month, Reuters reports citing people with knowledge of the matter. The move aims to reduce reliance on the West and provide tools for hedging against sharp price fluctuations. The contracts will be traded on the Shanghai Futures Exchange (ShFE). The introduction of these contracts represents a significant step for China as it seeks to increase its influence in the global energy market and promote the yuan as a benchmark currency. China is the world's largest importer of LNG, and the creation of a domestic futures market could help companies better manage price risk and secure more stable supplies. The move is expected to have significant implications for the global LNG market and strengthen China's position as a key player in the industry.