Russia’s liquefied natural gas (LNG) shipments to China reached a record level in November, as Chinese importers took advantage of discounted Russian supplies despite Western sanctions risks, Bloomberg reported.
Russian LNG exports to China surged over 100% year-on-year to 1.6 million metric tons, according to Chinese customs data, enabling Russia to surpass Australia and become China’s second-largest LNG supplier after Qatar.
The increase highlights Russia’s shift toward the Asian market after losing a significant portion of its European gas market following its full-scale invasion of Ukraine in 2022.
To remain competitive, Russia has significantly lowered its LNG prices. In November, Russian shipments were the cheapest among China’s 12 LNG suppliers, averaging around $9.85 per million British thermal units—roughly 10% below the market average, according to Bloomberg.
The reduced prices contributed to a rise in China’s overall LNG imports, marking the first yearly increase in over a year following a period of sluggish demand.
China has started receiving shipments from Russia’s sanctioned Arctic LNG 2 project through its Beihai terminal, though production at the site has been limited by winter ice and logistical hurdles.
Meanwhile, China has not purchased LNG from the United States since February, citing strained trade relations and muted demand.
Earlier, it was reported that China was secretly building a ‘shadow fleet’ of tankers to transport U.S.-sanctioned Russian LNG, potentially allowing Moscow to bypass Western sanctions while strengthening Beijing’s energy and political relationship with the Kremlin.
To offset declining sales to Europe, where governments are reducing reliance on Russian energy and moving toward a complete ban on Russian LNG imports, Moscow has shifted its gas exports toward Asia.
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