Chinese buyers are receiving Russian liquefied natural gas (LNG) at prices 20–30 percent below global market rates, according to Japanese media reports, becoming the primary beneficiaries of Washington’s expanded sanctions on Moscow’s energy sector. Data from European research firm Kpler shows China has received 13 cargoes of Russian LNG so far.
In mid-October, the United States pressed Japan and European governments to halt Russian LNG purchases. Yet the market has shown little sign of tightening. Asian spot LNG prices for January 2026 delivery remain around $11.0 to $11.5 per million BTU—far below the spikes seen at the onset of Russia’s invasion of Ukraine in 2022.
The report attributes this price stability to increased production from new LNG facilities in the United States and elsewhere, alongside continued flows of Russian LNG reaching China through discreet routes despite Western embargoes. Kpler’s vessel-tracking data shows a Russian LNG carrier unloaded at Beihai Port in Guangxi on October 30, delivering gas from the Arctic LNG 2 project.
Arctic LNG 2 has been under U.S. sanctions since 2023, with Washington imposing secondary sanctions risks on any companies trading with the project. That pressure deterred global buyers for months. However, China unexpectedly began accepting shipments in August. Beijing has concentrated Arctic LNG 2 cargoes at Beihai Port, which has limited exposure to global financial networks, reducing the risk of secondary sanctions.
The United States has not imposed secondary sanctions directly on China. Industry sources in Japan say LNG from Arctic LNG 2 sold exclusively to China is being traded at a 20–30 percent discount to market prices. As China increases purchases of Russian LNG and pipeline gas, its imports of U.S. LNG have fallen to zero.
Source: Central News Agency (Taiwan), November 7, 2025
https://www.cna.com.tw/news/acn/202511070144.aspx