Russia exports record high volume of gas to China in July to remain largest supplier to market
MOSCOW. Sept 20 (Interfax) - Russian companies supplied 3.27 billion cubic meters of gas to China via pipelines and in LNG form in July 2023, setting an all-time record for trade between the two countries, Russia's Federal Customs Service (FCS) said in a statement.
Russia outstripped the other major suppliers, including Australia that supplied 2.8 bcm and Turkmenistan that supplied 2.7 bcm.
Specifically, Gazprom supplied nearly two bcm of gas to China via the Power of Siberia pipeline, and LNG exports added another 1.3 bcm via around 15 consignments.
China imported 14.12 bcm of gas overall via pipeline and in LNG form in July 2023, a rise of 23% year-on-year, which was also an all-time high for the month.
One of the main factors in the dynamics of the global energy market has been growth in the Chinese economy in 2023 after the country lifted its restrictive measures.
GAS PIPELINES
China imports pipeline gas from Russia, Kazakhstan, Turkmenistan, Uzbekistan, and Myanmar.
The previous record for gas imports via pipeline was set in June 2023 at 5.785 bcm, though the figure reached 5.93 bcm in July 2023, growth of 10% year-on-year.
The capabilities of Central Asian sellers, which have boosted gas supplies since the end of the heating season, currently determine the picture regarding pipeline gas supplies to China rather than the buyer's policy.
There has been a planned increase in Russian exports via the Power of Siberia gas pipeline since the beginning of 2023, in line with the schedule for boosting supplies.
Since the beginning of the year, Turkmenistan had cut supplies 3% to 18.5 bcm versus January-July 2022, Uzbekistan had slashed supplies 36% to 1.5 bcm, and Kazakhstan had trimmed supplies 6% to 2.8 bcm.
LNG
China ramped up LNG imports 33% year-on-year to 6.3 million tonnes, or 8.2 bcm, in July 2023, though the figure was second to the 6.65 million tonnes in July 2021.
China outstripped Japan in terms of imported volumes of LNG for the fourth consecutive month in July at 5 million tonnes, and China imported the most LNG in January-July 2023.
Russia exported one million tonnes of LNG, or 1.3 bcm, to China in July, a record for a single month. Russia is currently third in supplying LNG to China, behind Australia's 2.2 million tonnes and Qatar's 1.3 million tonnes. Sakhalin Energy, co-owned by Gazprom, Mitsui, and Mitsubishi; as well as Yamal LNG, whose participants include Novatek , TotalEnergies , China National Petroleum Corporation (CNPC) and SRF, currently produce large-capacity LNG at their respective plants in Russia.
LNG re-exports from China totaled around 0.6% of imports in July, rising to 3%-4% in the winter. Re-exports were relatively small in July.