Russia's Arctic LNG 2 project has just achieved its highest output since launching at the end of 2023, despite the risk of being sanctioned by the G7 and the approaching Arctic ice season. China has become a lifeline for Russias liquefied natural gas (LNG) exports as the energy flow from the Arctic to Asia has never been so vibrant.
According to Bloomberg, the average daily output of the Arctic LNG 2 project in September reached 17.9 million m3, up about 14% from the previous record in August. This is the highest level since the complex came into operation in December 2023, operated by Novatek Group - Russia's largest private gas producer.
Output has increased sharply thanks to import demand from China, which is quietly becoming a key destination for Russian LNG amid tightening energy sanctions by the West.
Since late August, 7 Arctic LNG 2 LNG tankers have docked at the southern Chinese port of Guangxi, with another on its way, according to ship tracking data compiled by Bloomberg.
The port of Bac Hai receives most of its cargo via floating ship Koryak FSU located off the Kamchatka peninsula - where LNG from the Arctic has been transported since last year.
Due to the limited number of specialized Arc7 icebreakers, Russia can only transport directly from the Arctic to Asia in the summer and early fall, before the thick layer of ice makes the Northern Sea Route temporarily suspended.
At the end of September, the Christophe de Margerie - a symbol of the Arc7 - unloaded goods at Arctic LNG 2 and is currently moving eastward across the North Sea. Another ship, Voskhod, has also just completed a shipment in China and returned to receive a new shipment, according to data from the London Stock Exchange (LSEG).
Since its operation, Arctic LNG 2 has exported 16 LNG shipments, mainly to Asia. Russia is also moving part of the fully regasified part from the plant to Novatek's second floating warehouse near Murmansk, but no shipments from there have been distributed to buyers.
China is said to have become a transit station for Russian LNG, with the Border Sea as the receiving center, although the port has little international connectivity and is often not part of the global distribution network. However, Chinese importers have redistributed LNG from the North Sea to other ports.
The terms of delivery between Russia and China have not been disclosed, but since 2024, Novatek and Russian officials have offered LNG for sale at up to 40% discount, similar to the discount Russia applies to pipeline gas sold to China compared to European prices.
Analysts say Russia is racing against time to consume the maximum amount of LNG before the icefreeze of the Arctic in winter, while the G7 is preparing to impose new sanctions on Russia's energy projects.
