Russia's LNG exports to China hit record high — Bloomberg
Photo: Liquefied gas exports from Russia to China have risen to record levels (Getty Images)
Exports of Russian liquefied natural gas to China rose to a record high in November as buyers shrugged off the risk of Western sanctions to gain access to cheaper fuel, Bloomberg reports.
Supplies of chilled gas from Russia more than doubled from a year earlier to 1.6 million tons last month, customs data released last weekend showed. The jump allowed Russia to overtake Australia as China's largest supplier after Qatar.
Supplies from Russia doubled, while supplies from Australia fell by a third compared to last year.
Russia has entered Asia's largest gas market to compensate for reduced supplies to Europe, which was Moscow's biggest buyer for decades before the invasion of Ukraine. It had to lower prices to increase its attractiveness — its LNG was the cheapest among 12 suppliers to China.
At the same time, China has not imported American LNG since February, partly due to trade conflicts and weak demand. Large state-owned companies are also increasingly diversifying their sources, trying to sell contract volumes on world markets, which is easier for American contracts, which usually do not have destination clauses.
Background
Russia has focused on increasing natural gas exports to China. The Kremlin supplies gas to the Chinese at a reduced price.
A Russian liquefied natural gas export plant delivered its first shipment to China since US sanctions were imposed in January. This is another sign of strengthening energy cooperation between Beijing and Moscow.
