Abaxx Exchange, Zhonggong to explore LNG partnership

Executive Summary

• Abaxx Technologies Inc.'s Abaxx Exchange and Zhonggong Petroleum & Natural Gas Co. Ltd. have announced an intention to explore a partnership focused on liquefied natural gas (LNG) procurement and related trading services.
• The collaboration aims to leverage Zhonggong’s $640-million (U.S.) strategic LNG infrastructure investments in Shandong and Yunnan, connecting them with Abaxx Exchange’s trading infrastructure, international supplier network, and market information services.
• Key objectives include facilitating LNG procurement channels, providing access to price discovery and risk management tools, and strengthening logistics connectivity between international suppliers and Chinese demand centers.

Key Details

• Parties Involved: Abaxx Technologies Inc. (via Abaxx Exchange) and Zhonggong Petroleum & Natural Gas Co. Ltd.
• Nature of Agreement: Intention to explore a partnership for LNG procurement and trading services.
• Zhonggong’s Infrastructure Footprint: Represents $640-million (U.S.) in strategic LNG investments located in Shandong and Yunnan provinces.
• Abaxx Exchange’s Role: Providing trading infrastructure, international supplier network, and market information services.
• Key Focus Area 1 - Procurement: Establishing procurement channels to connect Zhonggong’s infrastructure projects with overseas LNG imports, delivered via domestic ports through purchases facilitated on the Abaxx Exchange in Singapore.
• Key Focus Area 2 - Price Discovery & Risk Management: Providing access to Abaxx's trading infrastructure, market data, and risk management tools to manage market volatility and support commercial decision-making.
• Key Focus Area 3 - Logistics: Strengthening logistics coordination and market connectivity within China to support delivery and distribution of LNG, with opportunities for further collaboration.
• Strategic Context: China's LNG demand growth is reshaping global trade flows; the partnership supports the development of reliable new demand centers.

Notable Quotes

• Nancy Seah, CEO of Abaxx Exchange: "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 centres... 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."
• Zhang Huanran, CEO of Zhonggong Petroleum & Natural Gas: "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 co-operation, 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."