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Russia’s liquefied natural gas trade with China reached a new peak in November, underscoring how pricing and supply shifts are reshaping Asia’s energy flows despite the presence of Western sanctions.
Customs figures released over the weekend show Chinese buyers increasing purchases as cheaper cargoes became available, helping lift overall imports for the first time in more than a year.
According to a Bloomberg report, the surge also reflects Moscow’s broader reorientation toward Asian markets as European demand remains constrained after the invasion of Ukraine.
For China, the trend highlights a pragmatic approach focused on cost, flexibility, and diversification across suppliers at a time of uneven domestic demand and shifting global trade patterns.
Deliveries of Russian LNG to China more than doubled from a year earlier to 1.6 million metric tons in November, according to customs data, notes Bloomberg.
The increase was large enough for Russia to overtake Australia and become China’s biggest LNG supplier after Qatar during the month.
The change in rankings illustrates how rapidly trade flows can adjust when pricing differentials open up, particularly in a market as large and flexible as China’s.
The surge in volumes coincided with a broader recovery in Chinese LNG imports.
Total purchases recorded an annual increase for the first time in more than a year, following a prolonged period in which weak demand limited buying.
Russian LNG was the cheapest among the 12 suppliers selling to China in November. Customs data show prices were about 10% below the average, at $9.85 a million British thermal units.
That discount has been a key lever for Moscow as it seeks to maintain export volumes while traditional European markets remain largely closed.
The reduced price cargoes have helped Russia offset declining pipeline and LNG shipments to Europe, which had been its largest buyer for decades before the war in Ukraine.
By competing aggressively on price in Asia’s biggest gas market, Russia has been able to secure market share even as sanctions risks persist.
China in August began importing LNG from Russia’s sanctioned Arctic LNG 2 project through the remote Beihai terminal, according to Bloomberg.
However, operational challenges remain. The Arctic LNG 2 facility has had to cut output as winter ice complicates exports, limiting the volume that can reach buyers during colder months.
These constraints highlight the logistical risks that accompany Russia’s northern projects, even as demand from Asia grows.
China has not imported LNG from the US since February.
The pause reflects a combination of trade frictions and weak domestic demand.
At the same time, major Chinese energy companies are increasingly diversifying their supply sources to manage risk and cost.
Domestic firms are also trying to resell some contracted LNG volumes on global markets.
This is generally easier with American contracts, which tend not to include destination clauses, giving buyers greater flexibility to redirect cargoes when domestic needs soften.
The post Russia LNG flows to China reaches record, as buyers ignore sanctions appeared first on Invezz
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