Beijing's LNG Lifeline: Sanctioned Russian Gas Flows in Under the Radar
China has been quietly taking delivery of sanctioned Russian liquefied natural gas (LNG) shipments, with at least 24 cargoes having arrived at its Beihai terminal since late August last year. The move marks a significant escalation of cooperation between China and Russia as Moscow seeks to bolster LNG exports to secure funding for its war in Ukraine.
The shipment of LNG from Russia's Portovaya plant on December 8 was particularly noteworthy, as it marked the first delivery since the plant was placed under US sanctions in January. The cargo, loaded onto a tanker at the Arctic LNG 2 terminal in 2024, had been stuck due to the sanctions, which prevented it from finding buyers.
However, with tensions easing and diplomatic relations warming up, Russia has found ways to circumvent these restrictions. By utilizing its so-called "dark fleet" of LNG tankers, Moscow has been able to discreetly transport gas around the world. These shipments were initially stuck on tankers or floating storage units but began moving again in August, coinciding with a high-stakes meeting between US President Donald Trump and Russian President Vladimir Putin.
Since then, at least 23 shipments from the Arctic LNG 2 plant have been delivered to Beihai, allowing China to secure access to cheap LNG that is discounted by 30-40 percent. This has not only provided Beijing with a reliable energy source but also reinforced cooperation between Russia and China on the political level.
For Moscow, these exports represent an important diplomatic achievement, allowing it to demonstrate its ability to operate despite severe sanctions imposed by Western countries. As Kjell Eikland, managing director at Eikand Energy, noted: "The main point is political... For Russia, it's mainly about proving that they can do business even with severe sanctions in place."
China has been quietly taking delivery of sanctioned Russian liquefied natural gas (LNG) shipments, with at least 24 cargoes having arrived at its Beihai terminal since late August last year. The move marks a significant escalation of cooperation between China and Russia as Moscow seeks to bolster LNG exports to secure funding for its war in Ukraine.
The shipment of LNG from Russia's Portovaya plant on December 8 was particularly noteworthy, as it marked the first delivery since the plant was placed under US sanctions in January. The cargo, loaded onto a tanker at the Arctic LNG 2 terminal in 2024, had been stuck due to the sanctions, which prevented it from finding buyers.
However, with tensions easing and diplomatic relations warming up, Russia has found ways to circumvent these restrictions. By utilizing its so-called "dark fleet" of LNG tankers, Moscow has been able to discreetly transport gas around the world. These shipments were initially stuck on tankers or floating storage units but began moving again in August, coinciding with a high-stakes meeting between US President Donald Trump and Russian President Vladimir Putin.
Since then, at least 23 shipments from the Arctic LNG 2 plant have been delivered to Beihai, allowing China to secure access to cheap LNG that is discounted by 30-40 percent. This has not only provided Beijing with a reliable energy source but also reinforced cooperation between Russia and China on the political level.
For Moscow, these exports represent an important diplomatic achievement, allowing it to demonstrate its ability to operate despite severe sanctions imposed by Western countries. As Kjell Eikland, managing director at Eikand Energy, noted: "The main point is political... For Russia, it's mainly about proving that they can do business even with severe sanctions in place."