China Defies Sanctions with Sixth Arctic LNG 2 Cargo as Prices Dip Across Global Markets

SINGAPORE, Sept 26— China has received its sixth liquefied natural gas (LNG) cargo from Russia’s sanctioned Arctic LNG 2 project, testing US resolve as no penalties have yet been imposed. According to Rystad Energy senior analyst Lu Ming Pang, continued shipments could provoke a US response, though few other countries are expected to risk similar imports. The Arctic LNG 2 project’s Train 1 and newly active Train 2, each with a 6.6-million-tonnes-per-annum capacity, are gradually ramping up supply.

Arctic LNG 2 Cargo

However, exports remain constrained by on-site production limits and a shortage of Arctic-class vessels, especially ahead of the winter ice season. Global LNG prices slipped last week, with Asian spot LNG for November falling to $11.35 per MMBtu and Europe’s TTF for October down to $10.98 per MMBtu. Henry Hub prices in the US also eased to $2.88 per MMBtu. Rising supply could further weigh on prices in coming months.  Rystad Energy

Business News