China is preparing to expand its intake of Russian LNG in the coming year, according to its ambassador to Moscow - Zhang Hanhui - according to Reuters. He noted that numerous prospective buyers have approached the Chinese embassy for assistance in establishing links with Russian LNG suppliers, indicating growing demand.

Discussions have also taken place between Beijing and Moscow regarding the Power of Siberia-2 pipeline—a major infrastructure project intended to deliver 50bn cubic metres of gas annually from Russia’s Yamal region to China via Mongolia. However, the exact route for the pipeline remains undecided, and a final agreement on the terms of supply has yet to be reached.

Data from TASS, based on Chinese customs statistics, shows that Russian LNG deliveries to China increased by 3.3% in 2023, reaching 8.3mn metric tonnes. Russia now ranks as China’s third-largest LNG supplier, following Australia and Qatar. Other key sources include Malaysia and the United States.

Despite the US accounting for roughly 5% of China’s LNG imports last year, no American LNG was delivered to China in March 2024, according to figures from Kpler and LSEG. This development follows recent reports from Reuters indicating that Chinese firms are diverting US-origin LNG cargoes due to rising import costs caused by ongoing trade tensions.

As the world’s largest LNG importer, China’s growing reliance on Russian energy underlines shifting dynamics in global energy markets, shaped by geopolitical factors and long-term infrastructure planning.