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Chinese imports of US LNG

plummet by 95%

IMPORTS IN the months between February and April, Chi- their Asia-based counterparts; one reason Rus-
nese imports of US produced LNG plummeted sia’s own move east to offload LNG of late will
by 95%, according to figures from Beijing. start to sting financially the longer it continues.
At the same time, China has slowly seen France, Holland, Spain and the United King-
imports of Russian LNG climb. Customs data dom in addition to Poland alone purchased over
released by the central government indicate 54% of all US LNG, according to the Energy
imports from China’s northern neighbour have Department.
increased by at least 50% year on year. This figure is expected to rise as UK-led
This has raised more than a few eyebrows in moves in support of Ukraine give fellow Euro-
East Asia, where many are worried about Chi- pean nations the incentive to finally wean them-
na’s long-term geopolitical ambitions regarding selves off an over-dependency on Russian LNG
Taiwan and other territorial claims in the South supplies. The same is true for the Russian oil
China Sea region. industry, which has for several months now been
Speaking recently at the Center for Strategic offering cheaper crude to Asian customers on the
and International Studies (CSIS), Nikos Tsafos, back of UK-led sanctions also implemented by
the James R. Schlesinger Chair in Energy and fellow European nations.
Geopolitics at the Energy Security and Climate Whether or not Europe’s decades old-reliance
Change Programme, made much of the bene- on Russian energy is permanently affected or not
fits of the US supplying European nations over is still being debated.
China. A number of voices are starting to hint that
“Russia could eventually build a sizable busi- Russian oil exports to the West will never again
ness geared toward Asian markets, but the shift post numbers seen in recent years. It is thought
(to this end) will be neither immediate nor easy,” LNG too will likely never return to previous
Tsafos said. export highs even if large scale replacements for
“It will depend critically on foreign partners, Russian suppliers may take longer to pin down.
including China,” and “to secure a contract with Similarly speculative, albeit somewhat more
China, Russia had to offer a bargain deal: China foreboding, are analysts now pointing to China’s
pays far less for Russian gas than Europe does,” potential to make itself Russia’s premier LNG
he added in an analysis released in May. export destination.
Just a year ago, however, the US was China’s Should this eventually be realised, it is
leading supplier of spot LNG cargoes. thought that Moscow might then be obliged to
And despite the current moves away from US toe the line in backing future Chinese aggres-
LNG and preference for Russian produced gas, sion against Taiwan and other neighbours in
long term, Beijing is still expected to honour pre- East Asia.
agreed deals with US exporters beginning later For now, though, LNG totals reaching China
this year and into next. remain tiny compared to numbers once exported
For now, though, in the year to date, US to declining European markets.
sources indicate that cargoes being sent to China Plans are being put in place, however, to
are very few and far between. The majority, in the develop a second major gas pipeline linking gas
wake of Russian aggression against Ukraine and fields in Eastern Russia and China.
subsequent sanctions, have instead been heading If and when this is ever up and running, Chi-
to mainland Europe. na’s neighbours will have a lot more than just
It is understood that European customers are LNG imports to consider. ™
willing to pay more for LNG spot cargoes than

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