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China is set to launch yuan-denominated liquefied natural gas (LNG) futures contracts on the Shanghai Futures Exchange as early as next month, aiming to decrease reliance on Western pricing benchmarks and enhance energy security. This initiative is expected to facilitate local currency hedging for Chinese firms and raise the global profile of the ShFE, as LNG imports are projected to rise by 12% this year. Foreign companies interested in trading will need to establish a presence in China, positioning the new contracts to challenge existing benchmarks like Henry Hub.