Russian LNG Exports to China Break Record

Russian liquefied natural gas exports to China broke a record set earlier this year, overtaking Australian shipments in November, according to customs data cited by Bloomberg.

The data showed that Russian LNG flows to China in November rose more than twofold from a year earlier to reach 1.6 million tons, making the country China’s second-largest LNG seller after Qatar.

Earlier this year, in September, Russian LNG exports to China hit an all-time high of 1.3 million tons, customs data from China showed at the time. The amount was an increase from 751,000 tons a year before that.

Trade in liquefied natural gas between China and Russia is on the rise this year despite Western sanctions on Russia’s LNG producers. Shipments of superchilled gas from the Arctic LNG 2 facility in Western Siberia started earlier this year and have continued despite the sanctions.

Since June, the operator of Arctic LNG2, Novatek, has sold more than 1 million tons of liquefied gas from Arctic LNG 2, despite sanctions. Cargo-loading accelerated markedly since August, with Vortexa reporting in September that there were six loaded LNG carriers in transit, carrying gas from the Gydan Peninsula.

China is estimated to have received at least ten LNG cargoes from Arctic LNG 2 as Beijing and Moscow appear bolder in defying U.S. and other Western sanctions on Russia’s energy exports. All exports from Arctic LNG 2 have been shipped to China, after China stopped buying U.S. LNG amid the two countries’ trade spat.

Meanwhile, Bloomberg reported on Friday that a Chinese LNG tanker had docked at Gazprom’s Portovaya LNG terminal in the Baltic Sea—the first such move on the part of China. The Portovaya terminal was sanctioned by the Biden administration in January but China has indicated repeatedly that it does not recognize the unilateral sanctions.

By Irina Slav for Oilprice.com

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