China appears to be establishing a system to import regular shipments of liquefied natural gas (LNG) from Russia’s Arctic LNG 2 project, which is under US sanctions. This move tests the Trump administration’s stance on penalizing Beijing for supporting Moscow’s energy sector.
China’s Strategy for Importing Sanctioned LNG
China has reportedly designated the Beihai terminal in southern China as the main receiving port for these sanctioned LNG cargoes. By using a single port with limited international exposure, Beijing aims to shield its broader gas sector from potential US retaliation. To further obscure the trade, purchases are being conducted through a lesser-known company, and major Chinese importers like Cnooc are diverting their regular deliveries away from Beihai to avoid any association with the sanctioned shipments.
Shipments and US Sanctions
The first-ever overseas export from the Arctic LNG 2 project, which had struggled to find buyers since being sanctioned by the Biden administration in 2023, arrived in China in late August. Since then, multiple additional cargoes have been sent. These continuous shipments signal a stronger commitment from Beijing, contrasting with the initial, largely symbolic gesture. The Trump administration has not yet commented on the shipments, a notable difference from the Biden administration’s approach of quickly sanctioning companies and vessels involved in the Arctic LNG 2 exports. This situation highlights the fine line Chinese companies must walk, as many have existing long-term contracts with US LNG exporters.
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Source: gCaptain
