Russia has surpassed Australia as China's top LNG supplier in 2025, with shipments reaching 18.5 million tons, driven by strategic energy partnerships and Western sanctions. The shift underscores evolving global energy dynamics and impacts major energy equities.
- Russia exported 18.5 million tons of LNG to China in 2025, surpassing Australia's 17.3 million tons.
- Russia’s share of China’s LNG imports rose to 36%, up from 22% in 2023.
- The Power of Siberia 2 pipeline and Arctic LNG 2 project were key enablers of increased exports.
- Australia’s share of China’s LNG imports declined to 33%.
- Global LNG pricing has seen downward pressure due to increased Russian supply at discounted rates.
- Energy equities including SHEL, XOM, RDS.A, and CNQ are adjusting long-term strategy amid shifting trade flows.
Russia has surged to the top of China's LNG import rankings, delivering a record 18.5 million tons of liquefied natural gas in 2025—exceeding Australia’s 17.3 million tons. This marks a pivotal change in global energy trade, as China increasingly relies on Russian supplies amid strained relations with Western suppliers. The shift is anchored in expanded infrastructure, notably the Power of Siberia 2 pipeline and the Arctic LNG 2 project, both of which have boosted Russia’s export capacity. Chinese demand for cleaner-burning fuel continues to rise, fueling the need for stable, long-term supply contracts. In contrast, Australia’s exports have been constrained by delayed projects and shifting market preferences. Russia’s share of China’s total LNG imports climbed to 36%, up from 22% in 2023. Meanwhile, Australia’s share fell to 33%, reflecting a structural realignment in Asian energy sourcing. Major energy firms like Shell (SHEL), ExxonMobil (XOM), and Royal Dutch Shell (RDS.A) are reassessing their Asian portfolios, while Canadian LNG exporter Canadian Natural Resources (CNQ) is exploring new markets to offset reduced exposure. The development is already influencing global LNG pricing and freight rates, with Russian cargoes increasingly priced at a discount to spot market benchmarks. This has created short-term volatility in the global commodity market and intensified competition among exporters. Energy investors are reevaluating risk exposure, particularly in Western-aligned LNG projects with limited Asian demand.