China energy import and resale trends

China is undergoing a significant shift in its liquefied natural gas (LNG) market dynamics. The country is transitioning from being the world’s largest importer to a major global reseller. This change is driven by a gap between long-term supply contracts and weakening domestic demand, caused by increased domestic production, expanded Russian pipeline deliveries, and renewable energy growth.

Chinese firms, such as PetroChina and CNOOC, have increasingly acted as international portfolio traders, redirecting cargoes from the United States and Australia to European or Asian markets to capture price differentials. In the first half of 2026, approximately 47% of LNG cargoes in Chinese trading portfolios were redirected to external customers.

Concurrently, China has significantly increased its imports of Russian energy. Between January and September, Russian LNG imports rose by 44.3% year-on-year to 7.19 million tons, making Russia the second-largest LNG supplier to China. This increase in Russian supply coincides with a decline in imports from traditional suppliers like Qatar, Indonesia, and the United States. Furthermore, Gazprom has reportedly provided substantial discounts on natural gas delivered via the Power of Siberia pipeline, with prices for the Chinese market expected to be roughly 56% lower than those paid by Gazprom’s other international clients.