Recently, CNOOC and Total Energy completed the first domestic purchase transaction of imported liquefied natural gas (LNG) settled in RMB through the Shanghai Oil and Gas Trading Center platform, with a transaction volume of approximately 65000 tons. LNG resources come from the United Arab Emirates, a member of the GCC.  The news has sparked widespread attention, marking a substantive step in China's exploration of cross-border RMB settlement transactions in the field of oil and gas trade, and also indicating a significant acceleration of the internationalization process of the RMB.  As the world's second largest economy, China's demand for oil and gas resources has always maintained a high level. According to data from the General Administration of Customs, in 2022, China imported over 500 million tons of crude oil and over 100 million tons of natural gas, including 63.44 million tons of LNG. In a sense, China has a strong demand for crude oil, and the use of RMB settlement for oil trade with China can help expand the scale of oil trade with China.  The main equipment of the mini LNG plant or micro LNG liquefaction plant is natural gas pretreatment, desulfurization and dehydration of natural gas, liquefaction unit, and loading unit.  At present, a total of 29 countries in international organizations such as the Shanghai Cooperation Organization and OPEC have agreed to use RMB for settlement. It is worth noting that the good news continues: on March 29th local time, the Brazilian Ministry of Foreign Affairs quoted a statement from the Brazilian Trade and Investment Promotion Agency to announce that Brazil has reached an agreement with China to conduct bilateral trade transactions in its local currency instead of the US dollar. On February 22nd, the Central Bank of Iraq stated that Iraq plans to allow direct settlement of trade with China in RMB for the first time, in order to improve foreign exchange reserves.  RMB settlement is just the tip of the iceberg of "de-dollarization" in various countries. On the one hand, since the outbreak of the COVID-19 in 2020, the fluctuation of the US dollar index has significantly increased, making investors and traders have to seek various ways to hedge currency risks. The distortion of energy and commodity supply caused by the asynchronous economic growth has also led to continuous adjustments in the prices of related commodities, which has an impact on international trade. Meanwhile, policy changes and fluctuations in the US dollar index also have a significant impact on the international capital market. This policy risk not only triggers fluctuations in developed country markets, but also brings more serious impacts to emerging markets. Economic entities have to try to diversify risks by holding gold and other means, in order to avoid the risks brought by fluctuations in the US dollar index. On the other hand, geopolitical risks have further intensified. Especially after the Russia-Ukraine conflict, many countries have realized that the oil pricing and settlement system based on the US dollar is extremely risky and tried to get rid of the dominance of the US dollar.  In the context of changes in US policies, increased fluctuations in the US dollar index, and increased international geopolitical risks, the internationalization of the RMB has become increasingly important for China's opening up and development. The report of the 20th National Congress of the Communist Party of China emphasizes the orderly promotion of RMB internationalization.   Contact: Sichuan Rongteng Automation Equipment Co., Ltd. Phone/WhatsApp/Wechat : +86 177 8117 4421  +86 138 8076 0589 Website: www.rtgastreat.com     Email: info@rtgastreat.com Address:No. 8, Section 2 of Tengfei Road, Shigao Subdistrict,Tianfu New Area, Meishan city, Sichuan China 620564 .