Russia's Arctic LNG 2 Project Fuels Surge in Chinese Gas Imports

China's imports of Russian liquefied natural gas (LNG) are rising this year, despite a decline in overall LNG intake. The main driver of growth is the Arctic LNG 2 project, which has benefited from lower prices and increased transport capacity.

The country imported 4.23 million tonnes of Russian LNG between January and July, up 25% year-over-year, while total LNG imports over the same period fell 4.6% to 33.8 million tonnes. Russian LNG's share of Chinese imports has thus risen to more than 12%, from 9.5% last year.

The shift is not only due to higher export volumes but also a change in Russia's trading strategy. China is becoming a key market for LNG that Russia, due to sanctions and limited access to Western markets, has to sell at a discount and under more complex logistical conditions.