Russia’s liquefied natural gas (LNG) exports to China reached record levels last November, as investors ignored the risks of Western sanctions in favor of obtaining lower-priced fuel.
Shipments of super-cooled gas from Russia to China more than doubled in November compared to the previous year, reaching 1.6 million metric tons, according to Chinese customs data released over the weekend. This made Russia surpass Australia to become China’s largest gas supplier after Qatar.
Russia pivots to Asian markets
Russia has turned to China, Asia’s largest gas market, to compensate for declining shipments to Europe, which was the largest buyer of Russian LNG for decades before the start of the war in Ukraine in 2022.
Moscow has also been forced to lower the price of its supplies to increase their attractiveness. The LNG it produced was the cheapest among China’s 12 suppliers, priced about 10% below the average at $9.85 per million British thermal units in November.
China’s total imports of Russian natural gas recorded a year-on-year increase for the first time in over a year, after weak demand had reduced needs.
Since last August, China has begun importing shipments from the Russian “Arctic LNG 2” facility, which is under Western sanctions. However, the Russian plant has had to reduce production due to winter ice complicating export operations.
China has not imported LNG from the United States since last February, due to trade tensions and weak demand. Major domestic companies in China are working to diversify their resources while seeking to sell contracted volumes on global markets, which is easier for American contracts that typically do not include destination clauses.
Russia
Russia is the world’s largest country by area, spanning Eastern Europe and Northern Asia. Its history is marked by the rule of the Tsars, the Soviet Union era following the 1917 revolution, and its establishment as the Russian Federation in 1991. The nation is known for its vast landscapes, rich literary and artistic traditions, and complex political history.
China
China is one of the world’s oldest continuous civilizations, with a recorded history spanning over four millennia. It is home to numerous UNESCO World Heritage sites, such as the Great Wall and the Forbidden City, which reflect its long imperial past and profound cultural achievements.
Australia
Australia is a continent and country with a history spanning over 65,000 years of continuous Indigenous culture, followed by British colonization beginning in 1788. It is known for its unique ecosystems, modern multicultural cities, and landmarks like the Sydney Opera House and Uluru.
Qatar
Qatar is a sovereign nation on the Arabian Peninsula, historically shaped by its Bedouin heritage and centuries of pearl diving. Its modern history was transformed by the discovery of oil and natural gas in the mid-20th century, leading to rapid development and significant global influence. Notable cultural sites include the Museum of Islamic Art in Doha and the archaeological zone of Al Zubarah, a UNESCO-listed former pearling and trading port.
Europe
Europe is a continent with a deeply layered history, shaped by ancient civilizations like Greece and Rome, the transformative Middle Ages, the Renaissance, and the profound impacts of two World Wars. Culturally, it is renowned for its diverse artistic heritage, architectural landmarks, and as the birthplace of influential movements like the Enlightenment and Industrial Revolution. Today, it is a major political and economic union, with the European Union fostering cooperation among many of its nations.
Ukraine
Ukraine is a country in Eastern Europe with a history dating back to the medieval state of Kyivan Rus’. It has experienced periods of foreign rule and achieved independence in 1991, with its cultural identity deeply shaped by its Orthodox Christian heritage and traditions like folk music and embroidery.
Moscow
Moscow is the capital and largest city of Russia, with a recorded history dating back over 800 years to its first mention in 1147. It grew from a medieval fortress, the Kremlin, into the political and cultural heart of the Russian state, serving as the capital of the Tsardom of Russia, the Soviet Union, and the modern Russian Federation. The city is renowned for its iconic landmarks like Red Square, St. Basil’s Cathedral, and the Moscow Metro, reflecting its long and complex historical evolution.
United States
The United States is a federal republic founded in 1776 after declaring independence from Great Britain, establishing itself through a revolutionary war and the adoption of a constitution in 1787. It grew from thirteen original colonies into a global superpower, with a history marked by westward expansion, industrial growth, and significant social and political movements. Its diverse culture is a product of immigration and its development as a major economic, military, and technological force.
Arctic LNG 2
Arctic LNG 2 is a major Russian liquefied natural gas (LNG) project located on the Gydan Peninsula in Siberia, operated by Novatek. Its development, which began in the 2010s, aims to harness the vast natural gas reserves of the Arctic region for global export. The project represents a significant strategic and economic investment in Russia’s Arctic energy infrastructure.
