China prepares new LNG terminal to expand imports from sanctioned Russian plant

The newly built Longkou LNG terminal in China’s eastern Shandong province, operated by state pipeline giant PipeChina, is preparing to receive Arctic LNG 2 cargoes, sources told Reuters.

“The move would provide a lifeline to the heavily sanctioned $21 billion project, and to Moscow, whose gas exports have been hit by Europe’s decision to stop purchases and whose oil sector faces pressure from Ukrainian attacks,” Reuters wrote. “A second import terminal would allow China to receive larger volumes of sanctioned Russian LNG while giving Arctic LNG 2, designed to produce 19.8 million metric tons a year, another export outlet.”

China, the only known buyer of sanctioned Arctic LNG 2 cargoes, has so far taken shipments through PipeChina’s Beihai terminal in Guangxi. Since the first delivery in August 2025, Beihai has received 41 cargoes, or 2.6 million metric tons of LNG, from Arctic LNG 2.

China, the world’s largest LNG importer, bought 7.57 million metric tons from Russia last year, Chinese customs data showed.

The first phase of the Longkou terminal in the coastal city of Yantai has annual receiving capacity of 5 million metric tons, compared with 6 million metric tons at Beihai.

Novatek confirmed in early September 2025 that it had delivered the first LNG shipment to China from the sanctioned Arctic LNG 2 project.

It was the first known Arctic LNG 2 cargo delivered to a buyer since the plant launched in late 2023. Shipments have been complicated by the risk of secondary sanctions.

The Arctic LNG 2 plant resumed natural gas processing in late March 2025 but was operating at low capacity.

Russian energy company Novatek owns a 60% stake in the plant, located on the Gydan Peninsula in the Kara Sea. The facility was intended to become one of Russia’s largest LNG plants, with final capacity of 19.8 million metric tons a year across three production lines.

Arctic LNG 2, a flagship Kremlin project, halted large-scale production in October 2024 as sanctions hurt foreign demand and ice buildup complicated ship arrivals. Although the plant managed to send several cargoes last summer, none found buyers, Bloomberg reported.

The United States placed Arctic LNG 2 under sanctions in November 2023.

In December 2023, foreign shareholders in Arctic LNG 2 suspended their participation in the project. They included France’s TotalEnergies, China’s CNPC and CNOOC, and a consortium of Japan’s Mitsui and JOGMEC.