Beijing Becomes Key Hub for Sanctioned Russian LNG

China has become the essential hub for Russia's sanctioned liquefied natural gas (LNG) exports, receiving over 40 cargoes from Russian LNG projects under U.S. sanctions between August 2025 and June 2026.

The southern Chinese port of Beihai received these cargoes at discounts ranging from 30 to 40 percent below prevailing Asian spot prices, indicating the emergence of a sanctions-resistant LNG trading system.

This system relies on Russia's development of maritime logistics, including floating storage units and dark ship-to-ship transfers, which allow sanctioned LNG to reach Asian waters.

China has addressed the issue of receiving terminals by building new infrastructure, with the Beihai terminal stopping imports from other suppliers before accepting Russian deliveries and limiting exposure to other terminals and suppliers.