LNG shipments from Russia, which have stood out over the past couple of years, have helped China profit by routing gas to European markets, according to Bloomberg.
China has been a persistent importer of Russian LNG into several European destinations. The latest data show LNG flows reaching a notable peak in the past two years, with nearly one billion cubic meters of gas delivered. In August alone, ten tankers were reported to have departed Russia bound for China.
Industry analysts believe much of this gas is entering China’s domestic market. Meanwhile, China is pricing other suppliers’ stocks at market rates, aligning with global price levels, and potentially boosting profits that could be substantial or even double what was typical before.
Bloomberg notes that China’s agreements with European nations have undergone shifts, with new long-term arrangements being forged even as the geopolitical backdrop remains tense. The Sakhalin-2 project is highlighted as a channel that could enable additional sales volumes despite broader political frictions affecting energy trade.
Turkish outlet Yeni Şafak reported in early September that China has begun selling Russian gas to Europe at wide margins, which is seen by some observers as an indirect consequence of, or reaction to, the embargo environment. Customs data from China indicate that in the first half of 2022, 2.35 million tons of fuel oil valued at about $2.16 billion were imported from Russia.