China gas trading platform inaugurated

China

SHANGHAI, November 28, 2016 – China officially launched the Shanghai Petroleum and Natural Gas Exchange (SHPGX) over the weekend in a bid to establish an internationally recognised trading platform.

SHPGX, which first began trading in July 2015, is expected to achieve transactions in the range of 15 bcm (530 bcf) in 2016, having realised similar volumes during a 16-month test run. Going forward, annual trading volumes are forecast to reach 30 bcm (1.06 tcf), roughly equivalent to 16% of China’s total yearly gas consumption.

The exchange currently has 10 shareholders, including China National Offshore Oil Corporation (10%), China National Petroleum Corporation (10%), Huaneng Power International (5%) and Sinopec (10%).