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to bring it to 20%. According to figures provided by Russia’s state statistics service Rosstat, LNG production in January-September 2023 amounted to 23.6mn tonnes, down by 4.4% y/y. In September, LNG production totaled 2.7mn tonnes, up by 3.2% y/y, and up by 24% month-on-month.
The EU limits the imports of Russian liquefied petroleum gas as part of the 12th sanctions package, expand export and import restrictions - by about 5bn euros - and ban the export of machine tools and equipment that can be used to produce military products.
LNG supplies from Russia to China increased by 38% in January-October 2023 y/y to 6.9mn tonnes, according to figures provided by the General Administration of Customs of China. In value terms, China’s LNG imports from Russia fell by 19% in the reporting period in annual terms to $4.4bn. In October, Russian LNG deliveries to China amounted to 748,600 tonnes, roughly flat compared with September. Russia was the third-largest LNG supplier to the People’s Republic of China in the reporting period after Australia and Qatar. In 2022, China imported 6.5mn tonnes of LNG from Russia, up by around 44% compared with 2021, whereas in value terms supplies climbed 2.4-fold to $6.74bn.
Global trade in liquefied natural gas will grow by another 25% in five years. LNG trade has already set a record in 2022 but is expected to grow by another 25% in five years to 500 million tons annually, according to the International Energy Forum (IEF). China has overtaken Japan to become the world's largest LNG importer, and the US will become the largest LNG exporter in 2023. "LNG is in greater demand than ever before and continues to contribute to economic growth and energy security around the world." LNG currently accounts for about 15% of the world's total volume of gas supplies. One of its advantages is the ability to be transported over long distances. Russia's invasion of Ukraine in 2022 has transformed energy markets: Faced with a sudden loss of pipeline gas, European buyers turned to LNG. In Europe, LNG's share of the demand mix has grown from 12% ten years ago to more than 50%, and European regasification capacity is expected to grow by another 48% by 2030.
The United States is solidifying its position as the world's leading supplier of gas and LNG amid a market disrupted by conflicts and sanctions. In late October, the US imposed sanctions on a forthcoming Russian liquefied natural gas (LNG) project, Arctic LNG 2, due to Russia's invasion of Ukraine. These sanctions could impact deliveries to foreign owners of the project, including the Japanese government and France's TotalEnergies SE.
The ongoing conflict in Israel poses a threat to fuel shipments through the Strait of Hormuz, a critical waterway for transporting energy resources. This
102 RUSSIA Country Report December 2023 www.intellinews.com