business
China Boosts Import Flexibility for Russian Gas
Prepares Second LNG Terminal to Receive Arctic LNG 2 Cargoes
China is preparing a second LNG import terminal to receive cargoes from Russia’s Arctic LNG 2 project. This will expand import capacity and improve logistics for shipments arriving via the Northern Sea Route as exports from the sanctioned project continue.
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China is preparing a second liquefied natural gas import terminal to receive cargoes from Russia’s Arctic LNG 2 project providing additional logistical flexibility for exports from the sanctioned Arctic development as shipments continue to flow to Chinese buyers.
The new import point will be the Longkou LNG terminal in eastern China’s Shandong province, a newly built facility operated by PipeChina that is expected to begin operations in October, according to Reuters reporting.
The terminal would join PipeChina’s Beihai LNG terminal in southern China, which has served as the primary receiving point for Arctic LNG 2 cargoes delivered to China since exports from the project began in August 2025.
Lengthy detour
The addition of Longkou marks a potentially significant logistical improvement for Arctic LNG 2 cargoes arriving via Russia’s Northern Sea Route (NSR), the seasonal Arctic shipping corridor that links northern Russia with Asian markets.
While Beihai is well positioned to receive cargoes arriving from southern routes via the Suez Canal or around southern Africa, vessels approaching China from the Arctic face a lengthy detour to reach the terminal.
The timing is notable
Longkou, located on China’s eastern coast, is roughly 2,000 nautical miles closer for LNG carriers arriving from northern approaches through the NSR.
Opening for Arctic shipping
The timing is notable because Longkou is expected to begin operations in October, coinciding with the final months of the Arctic shipping season. Cargo movements via the Northern Sea Route routinely continue through November and into December before winter ice conditions become more restrictive.
More than 40 cargoes, equivalent to roughly 2.6 million metric tons of LNG, have been shipped from Arctic LNG 2 since August 2025 despite U.S. sanctions targeting the project, according to shipping records and industry estimates.
The emergence of a second Chinese receiving point comes as Russia’s largest LNG producer, Novatek, continues efforts to expand exports from Arctic LNG 2 and build out supporting logistics.
Greater flexibility
The project added two Arc7 icebreaking LNG carriers to its transport network in recent months, alongside a growing fleet of conventional LNG carriers that have been linked to Arctic LNG 2 cargo movements.
The expanded vessel pool provides greater flexibility in managing cargo transfers between icebreaking vessels operating in Arctic waters and conventional carriers transporting LNG to end markets.
The additional import capacity available through Longkou could further ease logistical constraints. Beihai has import capacity of approximately 6 million metric tons per year, while Longkou is expected to add another 5 million tons per year.
Expanding Arctic LNG 2
At the same time, Novatek appears committed to advancing construction work at Arctic LNG 2 despite sanctions. Modules intended for Train 3 of the project are currently en route from China to the Belokamenka construction yard near Murmansk after departing Chinese shipyards in late April.
The heavy-lift vessels transporting the modules, Bright Ocean and Glory Ocean, are expected to arrive by mid-July.
The selection of Longkou has surprised some analysts, who had expected Chinese operators to avoid exposing a newly commissioned terminal to potential sanctions risks associated with handling Arctic LNG 2 cargoes.
Easier to isolate
However, concerns over sanctions exposure may have eased. While the United Kingdom has sanctioned the Beihai terminal for its role in receiving Arctic LNG 2 cargoes, neither the United States nor the European Union has taken comparable action against the facility.
Fewer complications
Industry participants also note that a newly commissioned terminal may be easier to isolate operationally. Beihai has only handled Russian cargoes since August 2025, limiting potential exposure for other LNG suppliers and customers.
Because Longkou has not yet begun commercial operations, operators would face fewer complications if the facility were similarly dedicated to receiving Arctic LNG 2 volumes.
Whether Longkou ultimately serves exclusively as a receiving point for Arctic LNG 2 cargoes or also handles LNG from other suppliers remains unclear.
But the addition of a second import terminal suggests Chinese buyers and infrastructure operators are preparing for continued Arctic LNG 2 shipments and potentially higher export volumes from the project in the years ahead.
