23.09.2026, 08:31
The reasons for the sharp increase in Russian LNG supplies to China are given
Source: OREANDA-NEWS
OREANDA-NEWS Supplies of Russian liquefied natural gas (LNG) to China have increased sharply due to the Europeans' abandonment of Russian energy resources and the conflict between the United States and Iran that caused a crisis in the fuel markets. Dmitry Scriabin called the reasons, Portfolio Manager of "Alfa-Capital" Management Company.
In July 2026, Russian fuel supplies to China increased by 43 percent. By the end of the month, Russia took the second place among the largest LNG suppliers to China, surpassing Malaysia and second only to Australia.
This growth is due to several factors. The key one is the start of deliveries from the "Arctic LNG-2" project. This factor is sustainable and will increase as the project develops and additional transport capacities are launched, which will lead to an increase in supplies to China, the expert explained.
"The situation on the global energy market has an additional impact, in particular the Iranian conflict, which increases demand for LNG, especially against the background of the destruction of Qatari plants. This factor is stable in the short term, but its further dynamics depends on the geopolitical situation," Scriabin added.
Finally, the market is affected by the ban on the import of Russian gas in EU countries under spot contracts, effective from the end of April this year. This measure is sustainable and will be tightened: from January 1, a complete ban on all supplies to the EU, including long-term contracts, will be introduced. As a result, export volumes will be reoriented mainly to the Chinese market.
By the end of July 2026, the total volume of LNG supplies from Russia to China increased by 43 percent compared to the same period in 2025. In the second month of summer, Russian suppliers shipped a total of 951,000 tons of LNG to China. For comparison, a year earlier the indicator was at the level of 664 thousand. Thus, shipments increased by 287 thousand tons in annual terms.
In July 2026, Russian fuel supplies to China increased by 43 percent. By the end of the month, Russia took the second place among the largest LNG suppliers to China, surpassing Malaysia and second only to Australia.
This growth is due to several factors. The key one is the start of deliveries from the "Arctic LNG-2" project. This factor is sustainable and will increase as the project develops and additional transport capacities are launched, which will lead to an increase in supplies to China, the expert explained.
"The situation on the global energy market has an additional impact, in particular the Iranian conflict, which increases demand for LNG, especially against the background of the destruction of Qatari plants. This factor is stable in the short term, but its further dynamics depends on the geopolitical situation," Scriabin added.
Finally, the market is affected by the ban on the import of Russian gas in EU countries under spot contracts, effective from the end of April this year. This measure is sustainable and will be tightened: from January 1, a complete ban on all supplies to the EU, including long-term contracts, will be introduced. As a result, export volumes will be reoriented mainly to the Chinese market.
By the end of July 2026, the total volume of LNG supplies from Russia to China increased by 43 percent compared to the same period in 2025. In the second month of summer, Russian suppliers shipped a total of 951,000 tons of LNG to China. For comparison, a year earlier the indicator was at the level of 664 thousand. Thus, shipments increased by 287 thousand tons in annual terms.
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