Despite US sanctions: Russia screws up LNG

Russia is sharply increasing its Liquefied Natural Gas exports – despite American sanctions against important facilities and the EU's impending complete import ban. Between January and September, the country exported 25.3 million tonnes of LNG, 14 percent more than in the previous year. This is reported by the Energy Intelligence news service, based on new data from the raw material analysis company Kpler. This increase is driven primarily by deliveries from two sanctioned projects to China. This development continues, as shown by own investigations by the Berliner Zeitung: At the sanctioned Arctic LNG 2 terminal, between January and July, well over 700 percent more Liquefied Natural Gas was loaded than in the previous year. The new Kpler figures now illustrate the difference such deliveries make to Russia's entire LNG business. Without the sanctioned quantities, exports would have slightly decreased. Sanctioned facilities drive Russia's LNG export surplus The focus is on the Arctic LNG 2 project controlled by the Russian gas company Novatek and Gazprom's Portovaya facility. Both are under US sanctions and, according to Energy Intelligence, have built supply chains to the Chinese LNG terminal Beihai since the second half of 2025. Arctic LNG 2 therefore regularly supplies China since August 2025. Portovaya also began exporting quantities from sanctioned facilities to China last year. Travel Highlights Travel highlights exclusively for you More Without these deliveries, Russia's LNG shipments between January and September amounted to around 21.6 million tonnes – a decrease of 0.3 percent compared to the previous year. Only the additional quantities from the sanctioned business significantly shift the balance into surplus. Short before the import ban: EU buys 60 percent more LNG from Russia The US wanted to stop Russia's Arctic LNG 2 – now sanctioned ships deliver the last modules from China For Arctic LNG 2, data from the London Stock Exchange operator LSEG, which were exclusively provided to the Berliner Zeitung, already demonstrated the increase: From January to July 2026, around 1.71 million tonnes were loaded there. In the previous year, it was only 0.21 million tonnes. The amount has more than quadrupled. China creates a market for the sanctioned facilities. This is crucial for Novatek: The US sanctions had initially cut Arctic LNG 2 off from international business. There was a lack of suitable ships and buyers for the Liquefied Natural Gas from the Arctic facility. Discounts attract buyers, Novatek procures more tankers Russia also finds the Chinese market through prices. As the Berliner Zeitung reported at the end of August, based on S&P Global Energy, Novatek offered shipments from Arctic LNG 2 with discounts of 30 to 40 percent on Asian LNG reference prices. At the same time, Russia's importance for China's gas supply grew: Between January and July, Chinese LNG imports from Russia increased by 24.9 percent to 4.23 million tonnes, according to the report at the time. China's total LNG imports, however, decreased by 4.6 percent during the same period. Russia thus gained market shares in a shrinking import market. The Russian terminal Arctic LNG 2: The operator Novatek offered Chinese buyers LNG shipments with up to 40 percent discount on Asian reference prices. © Arctic LNG 2 In parallel, Novatek is expanding its transport options. Only on Thursday did the Berliner Zeitung report, based on Reuters, about two additional LNG tankers of the Arc4 ice class. The Novatek company Gas & Power Asia is now managed as the commercial operator of the "North Ocean" and the "North Moon". Both ships had previously been struck from the EU sanctions list after it was assured that they would not be used for transport from Yamal LNG and Arctic LNG 2. Whether they have actually taken on shipments from these projects was not shown in the Reuters report. EU buys 60 percent more Russian LNG in September The EU has also recently increased its purchases significantly. As the Berliner Zeitung reported on Friday, based on a new monthly report from the CREA research center, the member states imported 60 percent more Russian Liquefied Natural Gas in September than in August. France doubled its imports compared to August. Almost three-quarters of the Russian LNG import volume for the EU was unloaded at French ports. However, this increase follows an exceptionally weak preceding month: In August, imports fell to the lowest level since the start of the Russian war against Ukraine. Despite the recovery, the September amount remained low in the longer-term comparison. Russia's LNG business also brought significantly higher revenues. According to CREA calculations, global revenues from deliveries unloaded at their destination ports increased by 68 percent compared to August, reaching an average of 75 million euros per day – the highest level since January 2023. The corresponding quantities increased by 48 percent. From January 1, 2027, the complete EU import ban for Russian LNG will take effect. However, sales to customers outside the EU will not be fundamentally prohibited by this. China gains additional importance for Russia's further export business. EU pays 7.3 billion for Russian LNG – now substitute suppliers rebel New figures reveal: Russia delivers gas to Germany unnoticed – despite EU tariffs China connection grows despite remaining bottlenecks The available ships and terminals are currently limited. Arctic LNG 2 and Portovaya continue to operate significantly below their potential export capacity, according to Energy Intelligence. Their current sole destination terminal Beihai can accommodate six million tonnes annually. The additionally planned Chinese terminal Longkou had not yet received the corresponding shipments at the time of the report. A further shift of Yamal supplies to Asia would tie up additional tankers. In winter, ice conditions make direct travel through the Arctic more difficult; longer routes increase transportation costs. Further US sanctions against Yamal could further restrict the choice of potential buyers, according to Energy Intelligence's assessment. However, Russia has significantly increased its LNG exports so far. The new data show more than a shift of existing deliveries: It is the sanctioned facilities that deliver the additional quantities that turn Russia's export balance into a surplus. Your opinion is important to us. Send us your feedback on this article: briefe@berliner-zeitung.de