Novatek, the Russian gas producer, has reportedly opened a new office in China, according to Reuters. The move signals a strategic push into the Chinese market as the company eyes growth in Asia and aims to broaden its commercial footprint in LNG trading and project development.
Sources describe a ten-person team led by Xu Jinhai, who previously served as the head of Gazprombank in China. The group will concentrate on marketing initiatives and business development, positioning Novatek to engage potential buyers for its Arctic LNG 2 project, which has faced U.S. sanctions since November 2023. The new Beijing-based office is designed to facilitate outreach to energy partners and secure customers for the LNG project as part of a broader expansion plan across the Asia-Pacific region.
As of 2023, China surpassed Japan to become the globe’s largest LNG importer. The principal suppliers at that time included Australia, Qatar, Russia, Malaysia, and Indonesia, underscoring the competitive environment in which Arctic LNG 2 would operate if sanctions and regulatory constraints are navigated successfully. The Chinese office appears to be a deliberate step toward diversifying sales channels and boosting the project’s regional visibility in a pivotal energy market.
Recent reports indicate Gazprom has set a daily record for gas deliveries to China via the Power of Siberia pipeline, conducted under a bilateral agreement with CNPC. This development highlights the importance of cross-border energy trade and the role of long-distance pipelines in sustaining winter energy supply and strengthening strategic partnerships between Moscow and Beijing.
Earlier discussions between Russia and China touched on the possible construction of the Power of Siberia 2 gas pipeline, which would broaden bilateral energy cooperation. These conversations reflect ongoing planning around longer-term gas supply routes and infrastructure investments that could influence future trade dynamics and regional energy security.