Russia Surges to Second Place in China's LNG Market Amid Global Supply Disruptions

Russian liquefied natural gas (LNG) shipments to China have surged by 43% in July 2026, according to Dmitry Scriabin, Portfolio Manager of 'Alfa-Capital' Management Company. This increase is largely due to the European Union's ban on Russian energy imports under spot contracts, effective from April this year.

The ban has led to a reorientation of export volumes towards China, with Russia taking second place among largest LNG suppliers, surpassing Malaysia and trailing only Australia by the end of July 2026. The start of deliveries from the 'Arctic LNG-2' project is also a significant factor in this growth.

The Iranian conflict has further contributed to increased demand for LNG, particularly following the destruction of Qatari plants. Scriabin notes that while the market is affected by the geopolitical situation, this factor's dynamics depend on future developments.