China’s Russian gas imports jump in first 8 months, while LNG exports hit record levels amid supply diversions

China’s imports of Russian gas surged in the first eight months of the year, while its LNG exports hit record levels amid reports Chinese energy companies have stepped up diversions to take advantage of high international spot prices.

Russia and Qatar were the only major suppliers to increase liquefied natural gas (LNG) exports to China in the first eight months of the year, customs data showed.

The volume from Russia, which has jumped from China’s sixth largest gas supplier to the fourth in the past year, rose by 28.5 per cent year on year. The volume from No 2 supplier Qatar increased by 66.7 per cent over the same period.

Chinese customs data showed the value of natural gas coming from Russia via pipeline almost tripled in the first eight months to US$2.39 billion. The August value increased by 26.5 per cent compared with the previous month.

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China also exported a record US$164 million worth of LNG to Europe – including Spain, France and Malta – and another US$284 million worth to Japan, South Korea and Thailand in the first eight months of 2022. In contrast, Chinese exports were worth US$7 million last year.

China’s gas exports this year have been shipped primarily from Shanghai, Hainan and Guangdong, home to large LNG terminals that receive cargo from Malaysia and Australia under long-term contracts, and are also suited to re-exports. The two countries are among the top three LNG suppliers to China in 2022.

Chinese energy companies have been reselling excess LNG to the international market to take advantage of the price difference between long-term contracts and elevated spot price following the Ukraine war.