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China Expands Infrastructure to Absorb Sanctioned Russian LNG

The Longkou LNG terminal in Shandong province is preparing to become a primary intake point for Russian liquefied natural gas, as Beijing seeks to bolster its energy security. Operated by state-owned PipeChina, the facility is positioned to process rising volumes from the Arctic LNG 2 project ahead of its 2026 launch.

China Expands Infrastructure to Absorb Sanctioned Russian LNG

Beijing has accelerated its infrastructure development to accommodate a surge in Russian energy imports, which have become a critical buffer against Middle Eastern supply disruptions. The Longkou terminal is strategically located near the Koryak floating storage unit, offering a more efficient route for Arctic cargoes than the existing hub at Beihai. This geographical advantage helps streamline the logistics of handling blacklisted fuel while insulating the broader Chinese gas network from potential secondary sanctions.

Novatek has fueled this shift by slashing cargo prices by up to 40% to maintain export momentum. With more than 40 cargoes already delivered since August 2025, China remains the exclusive destination for Arctic LNG 2 production. As daily import volumes climb toward 178,000 tons, the integration of both Longkou and the Dalian terminal ensures that the state can maintain consistent heating supplies despite global market volatility.

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