China is moving forward with the creation of a second liquefied natural gas (LNG) import terminal to manage cargoes from the Russian Arctic LNG 2 project, which is currently under Western sanctions. According to information cited by Reuters, this development is expected to significantly boost the capacity to supply Russian exports to the Asian market.
Longkou terminal in the spotlight
The newly built Longkou LNG terminal, in the Shandong province of eastern China, is intended to be the second reception point for cargoes from Arctic LNG 2. The facility is operated by PipeChina, the country's state-owned pipeline operator. The addition of Longkou creates a new export outlet for the $21 billion project, which has been impacted by sanctions and difficulties in accessing international markets.
Strategic benefit for Moscow and Beijing
The operation of a second terminal will allow China to increase imports of Russian LNG that is subject to sanctions, while simultaneously offering Moscow greater flexibility in disposing of its volumes. Arctic LNG 2 is designed to produce up to 19.8 million tons of LNG annually, making the discovery of stable export routes critical at a time when Europe has drastically reduced its purchases of Russian natural gas.
China remains the key buyer
To date, China is the only known buyer of sanctioned cargoes from Arctic LNG 2. Deliveries are currently carried out through the Beihai terminal, also managed by PipeChina. Since August 2025, when the first delivery took place with the tanker Arctic Mulan, the station has received 41 cargoes, with a total volume of approximately 2.6 million tons of LNG. Additionally, it has received three cargoes from the Russian Portovaya LNG terminal.
Why Longkou was chosen
Longkou is considered an ideal choice as it is located closer to the Koryak floating storage unit in Russia's Far East, where volumes from Arctic LNG 2 are concentrated and loaded. According to market sources, construction work is in the final stages and the station is expected to be fully operational before October, in order to meet the increased winter demand.
New capacity and expansion prospects
The first phase of the project at Longkou provides for an annual reception capacity of 5 million tons of LNG, compared to 6 million tons at Beihai. At the same time, the potential utilization of PipeChina's Dalian LNG terminal as a possible future entry gateway is also being examined. Simultaneously, Novatek, the main shareholder of Arctic LNG 2, is strengthening its presence in the Chinese market, while it has proceeded with significant price discounts, in the order of 30%-40%, in order to attract more Chinese buyers despite the sanctions regime.
What the development signifies
The creation of a second terminal confirms the closer energy cooperation between China and Russia. At the same time, it highlights Moscow's effort to redirect natural gas exports toward Asia, offsetting the losses caused by the departure of European markets from Russian energy.
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