Due to the idea of pursuing partnership in liquefied natural gas – LNG procurement and trading services, Abaxx Commodity Exchange from Singapore, which is an affiliate of Abaxx Technologies, has gone ahead and joined hands with Zhonggong Petroleum & Natural Gas (Zhonggong), which happens to be an energy company that has provincial-level priority projects that are based across the north and southwest of China and developed in coordination with the National Energy Administration.
Shortly after Abaxx Exchange joined forces with Qingdao International Energy Exchange from China to look into a strategic cross-border partnership in the LNG market, the Singaporean player went on to disclose its intention to go ahead and also explore a collaboration pertaining to LNG procurement and trading with Zhonggong.
This sort of collaboration is expected to connect the growing infrastructure footprint of the Chinese firm in Shandong and Yunnan, thereby representing $640 million when it comes to strategic LNG investments along with the international supplier network as well as market information services and trading infrastructure of Abaxx Exchange.
Apparently, the Asian duo is also pooling resources so as to support a dependable LNG procurement, enhance the access when it comes to transparent pricing as well as risk management tools, and make the logistics connectivity between international suppliers and demand centers based in China more robust.
The CEO of Abaxx Exchange, Nancy Seah, underscored that the LNG demand growth in China is indeed reshaping the global trade flows, and investments in Shandong and Yunnan from Zhonggong highlight the significance of developing dependable new demand centers.
She added that Abaxx Exchange has gone on to build the regulated marketplace and at the same time physically backed forward curve that is required to connect partners such as Zhonggong with international supply, therefore supporting better price discovery as well as stronger market access when it comes to LNG participants.
This partnership, hence, is anticipated to facilitate LNG procurement through establishing procurement channels in order to connect the infrastructure projects from Zhonggong in Shandong as well as Yunnan with the overseas LNG imports, delivered by way of domestic ports via purchases that are facilitated on the Abaxx Exchange based in Singapore.
Apparently, the collaboration is going to bring with it LNG price discovery as well as risk management through offering access to the trading infrastructure and market data as well as the risk management tools of Abaxx so as to manage the volatility of the market and also support commercial decision-making that is efficient.
It is worth noting that the duo is also going to work on logistics as well as a cooperation framework by way of making the logistics coordination as well as market connectivity within China more robust so as to support the delivery along with the distribution of LNG, with more opportunities so as to further the collaboration with time.
The Chief Executive Officer at Zhonggong Petroleum & Natural Gas, Zhang Huanran, stressed the fact that as they expand their LNG infrastructure across Shandong and Yunnan, collaborating with Abaxx Exchange helps to connect to a regulated global marketplace with just physically backed LNG forward curve trading.
By way of this cooperation, they are indeed focused on securing a balanced and high-quality LNG supply in order to support the growth of their operations and, at the same time, to advance more efficient as well as lower-carbon energy solutions.
