China Sets Record in Reselling Russian LNG, Solidifies Role as Asia’s Energy Hub

China has set a new record for the resale of Russian liquefied natural gas (LNG) in Asia, emerging as the region’s largest energy intermediary and generating substantial profits in the process.

According to reports, in March, Chinese companies exported an unprecedented eight to ten large shipments of LNG to neighboring countries — the highest volume on record. The primary buyers were Japan and South Korea, with additional volumes sent to Thailand, India, and the Philippines.

State-owned Chinese firms are capitalizing on favorable long-term contracts with Russia, purchasing the gas at discounted prices and reselling it at prevailing market rates across the Asia-Pacific, often at a significant margin.

This development stems from a unique set of domestic conditions in China. A slowdown in the world’s second-largest economy has reduced internal energy demand, while domestic natural gas production continues to rise and pipeline supplies from Russia remain steady. The resulting surplus has enabled Beijing to meet its own needs comfortably and reposition itself as a strategic energy hub, profiting from regional price differences.

For buyers such as Japan and South Korea, purchasing Russian LNG through Chinese intermediaries has become one of the few reliable channels to secure energy supplies amid ongoing global market volatility and Western sanctions.