Russian LNG supplies to China hit all-time peak

Russia’s liquefied natural gas (LNG) exports to China surged to a record high in November, as Chinese buyers set aside concerns over Western sanctions to secure cheaper fuel, Bloomberg reports.

According to customs data released over the weekend, Russian LNG shipments more than doubled year-on-year to 1.6 million metric tons last month. The sharp increase allowed Russia to overtake Australia and become China’s second-largest LNG supplier after Qatar.

While deliveries from Russia surged, Australian LNG supplies to China fell by roughly one-third compared with the same period last year.

Russia has been expanding its presence in Asia’s largest gas market to offset a sharp decline in exports to Europe, which had been Moscow’s main buyer for decades prior to the invasion of Ukraine. To remain competitive, Russian exporters have offered discounted prices, making Russian LNG the cheapest among China’s 12 suppliers.

Meanwhile, China has not imported LNG from the United States since February, partly due to trade frictions and weaker demand. Major Chinese state-owned companies are also increasingly diversifying supply sources and reselling contracted volumes on global markets — a strategy more easily applied to US contracts, which typically lack destination restrictions.

By Khagan Isayev