China Develops Second LNG Terminal for Russian Arctic LNG 2 Cargoes
China is establishing a second LNG import terminal, Longkou, in Shandong province to handle shipments from Russia's Arctic LNG 2 project, currently subject to sanctions. This expansion will facilitate increased imports of Russian LNG, crucial as Western sanctions have significantly impacted Moscow's gas export capabilities.
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China is moving forward with the Longkou LNG terminal, which will enhance capacity for receiving liquefied natural gas from the sanctioned Arctic LNG 2 project. The new facility, operated by PipeChina, will provide an additional export outlet for the $21 billion project, designed for 19.8 million tons annually.
So far, China has imported 7.57 million tons of LNG from Russia, primarily through the Beihai terminal. Longkou’s operational capacity will be 5 million tons per year and it is expected to be ready by October to meet winter demand. This development reflects China's strategic intentions to bolster energy ties with Russia amidst ongoing sanctions, potentially reshaping regional energy dynamics.
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