Russian LNG supplies to China increased by 43% in July 2026
Quick Look
- In July 2026, supplies of Russian liquefied natural gas to China increased by 43%, which allowed the Russian Federation to become second among the largest suppliers of LNG to China after Australia.
- The growth is due to the launch of the Arctic LNG-2 project, demand against the backdrop of the Iranian conflict and the ban on Russian gas imports to the EU.
AI-generated summary
Why It Matters
The ban on the import of Russian gas into the EU under spot contracts has been in effect since the end of April 2026, and from January 1, 2027, a complete ban on all supplies will be introduced. At the same time, global demand for LNG is growing due to the Iranian conflict and damage to Qatari plants.
Supplies of Russian liquefied natural gas (LNG) to China have increased sharply due to the Europeans’ refusal of Russian energy resources and the conflict between the United States and Iran, which has caused a crisis in the fuel markets. The reasons were given to Lente.ru by the portfolio manager of Alfa Capital Management Company Dmitry Scriabin.
In July 2026, Russian fuel supplies to China increased by 43 percent. At the end of the month, the Russian Federation took second place among the largest LNG suppliers to China, surpassing Malaysia and second only to Australia.
This growth is due to several factors. The key one is the start of supplies from the Arctic LNG-2 project. This factor is sustainable and will increase as the project develops and additional transport capacities are launched, which will lead to an increase in supply volumes to China, the expert explained.
“An additional impact is exerted by the situation on the global energy market, in particular the Iranian conflict, which increases the demand for LNG, especially against the backdrop of the destruction of Qatari plants. This factor is stable in the short term, but its further dynamics depend on the geopolitical situation,” added Scriabin.
Finally, the market is affected by the ban on the import of Russian gas into EU countries under spot contracts, which has been in effect since the end of April this year. This measure is sustainable and will be tightened: from January 1, a complete ban will be introduced on all supplies to the EU, including long-term contracts. As a result, export volumes will be reoriented primarily to the Chinese market.
What to Watch
AI outlook — possibilities, not facts
Russia's share in the Chinese LNG market will continue to grow in 2027 after the introduction of a complete ban on supplies to the EU
Likely · Within months
The launch of additional transport capacities for the Arctic LNG-2 project will increase the volume of supplies to China
Possible · Within months
Open Questions
- How quickly can China increase its LNG receiving and regasification capacity?
- How will other LNG suppliers (Australia, Malaysia, Qatar) react to Russia’s growing share in the Chinese market?
- What alternative routes and types of fuel are European countries considering to replace Russian gas?
