Trade reports from Gazprom and China's National Bureau of Statistics

China Overtakes Europe as Top Buyer of Russian Gas Amid US Push to Tighten Russian LNG Exports

Oct 22, 2024, 03:32 AM

China is poised to become the largest market for Russia's pipeline gas this year, overtaking Europe after the Kremlin's war against Ukraine led to reduced flows to the region. Gazprom exported 23.7 billion cubic meters of natural gas to China from January to September, almost 40% more than in the same period in 2023, representing a 1.7 bcm increase since early 2022. Meanwhile, EU imports of Russian gas have fallen by 7.2 bcm over the same period. Russia's role in the European Union's liquefied natural gas (LNG) market is growing, with its share increasing to 20%, even as the bloc considers how to clamp down on supplies from the nation. Despite overall gas demand in Europe continuing to fall, including LNG, Russia's share has risen. The US will continue to "tighten the screws" on Russian LNG exports to deprive Moscow of funds for its war in Ukraine, according to a State Department official. However, the US has stopped short of sanctioning other LNG plants beyond Arctic 2. The US is also closely monitoring the "dark fleet" of tankers carrying sanctioned oil and conducting ship-to-ship transfers in Southeast Asian waters.