Key facts
- China is preparing a second LNG terminal, Longkou, in Shandong province to receive sanctioned Russian LNG.
- The Longkou terminal is expected to be operational before October 2026.
- China's LNG imports have surged to 178,000 tons per day.
- Russian exporter Novatek has reduced prices for Arctic LNG 2 cargoes by 30% to 40% to attract Chinese buyers.
- China has purchased over 40 cargoes from Russia's Arctic LNG 2 project since August 2025.
China is enhancing its capacity to receive Russian liquefied natural gas (LNG) by preparing a second terminal, the Longkou LNG terminal in Shandong province. This move comes as the country's overall LNG imports have surged significantly.
The Longkou terminal, operated by PipeChina, has completed its construction phase and is anticipated to be fully operational before October 2026, aligning with peak winter heating demand. This strategic expansion aims to accommodate increased volumes from Russia's Arctic LNG 2 project, especially given disruptions to Middle Eastern LNG flows through the Strait of Hormuz and Qatar's Ras Laffan complex.
To stimulate demand for its sanctioned cargoes, Russian exporter Novatek has reduced prices for Arctic LNG 2 by 30% to 40%. China has become the sole buyer for these cargoes, having purchased over 40 shipments, totaling approximately 2.6 million tons, since August 2025. The Beihai LNG terminal, China's main hub for sanctioned Russian gas, requires additional support, and Longkou's proximity to Russia's Far East makes it a strategic location for storing and reloading these cargoes.
Additionally, the Dalian terminal in Liaoning province is already connected to existing pipeline networks from Russia. China had previously quarantined the Beihai terminal, halting Australian LNG imports, to safeguard its infrastructure from potential U.S. secondary sanctions.