With the idea of pursuing a collaboration in liquefied natural gas (LNG) procurement and related trading services, Singapore’s Abaxx Commodity Exchange, an affiliate of Abaxx Technologies, has joined forces with Zhonggong Petroleum & Natural Gas (Zhonggong), an energy company with provincial-level priority projects in the north and southwest China, developed in coordination with the National Energy Administration.
Shortly after Abaxx Exchange teamed up with China’s Qingdao International Energy Exchange to look into a strategic cross-border collaboration in the LNG market, the Singaporean player has disclosed its intention to explore a partnership in LNG procurement and trading with Zhonggong.
This collaboration is anticipated to connect the Chinese firm’s growing infrastructure footprint in Shandong and Yunnan, representing $640 million in strategic LNG investments, with Abaxx Exchange’s trading infrastructure, international supplier network, and market information services.
The Asian duo is pooling resources to support reliable LNG procurement, improve access to transparent pricing and risk management tools, and strengthen logistics connectivity between international suppliers and China’s demand centers.
Nancy Seah , CEO of Abaxx Exchange, highlighted: “China’s LNG demand growth is reshaping global trade flows, and Zhonggong’s investments in Shandong and Yunnan highlight the importance of developing reliable new demand centers.
“Abaxx Exchange has built the regulated marketplace and physically-backed forward curve needed to connect partners like Zhonggong with international supply, supporting better price discovery and stronger market access for LNG participants.”
As a result, this partnership is expected to facilitate LNG procurement by establishing procurement channels to connect Zhonggong’s infrastructure projects in Shandong and Yunnan with overseas LNG imports, delivered via domestic ports through purchases facilitated on the Abaxx Exchange in Singapore.
The collaboration will entail LNG price discovery and risk management by providing access to Abaxx’s trading infrastructure, market data, and risk management tools to manage market volatility and support more efficient commercial decision-making.
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The duo will also work on logistics and cooperation framework by strengthening logistics coordination and market connectivity within China to support the delivery and distribution of LNG, with opportunities for further collaboration over time.
Zhang Huanran , Chief Executive Officer of Zhonggong Petroleum & Natural Gas, emphasized: “As we expand our LNG infrastructure in Shandong and Yunnan, working with Abaxx Exchange connects us to a regulated global marketplace with the only physically-backed LNG forward curve trading today.
“Through this cooperation, we are focused on securing stable, high-quality LNG supply to support the growth of our operations and to advance more efficient, lower-carbon energy solutions.”