Russia's LNG Exports to China Surge 143% in November, Displacing Australia Amid Sanctions

Russia's liquefied natural gas (LNG) shipments to China skyrocketed last month, cementing Moscow's role as a top energy supplier to the world’s second-largest economy and underscoring the deepening economic ties between the two nations in the face of Western sanctions.

A Stark Reversal in Trade Flows

According to the latest Chinese customs data, imports of LNG from Russia surged by a staggering 142.6% year-on-year in November, reaching 1.6 million tonnes. This propelled Russia to become one of China's top two suppliers, alongside Qatar. Russian LNG accounted for 23.5% of China's total shipments, more than doubling its 11% share from a year prior.

Meanwhile, Australia, previously the top supplier, saw its shipments slide. Australian LNG exports to China fell by 33.6% by volume in November. This decline left Australia with just 21.1% of China's LNG imports—a sharp retreat from its 36% market share a year ago.

The Sanctioned Source

According to Xu Tianchen, senior economist at the Economist Intelligence Unit, "the changes are very much a supply-side story." He attributed the surge to the resumption of production at the Arctic LNG 2 project on the Gydan Peninsula, which reportedly directs its entire output to China.