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Russia's Novatek Making LNG Push in China

LNG

The China marketing arm of Russia’s Novatek is looking to sell LNG shipments into China as it aims to break into the new market Reuters sources report.

  • Novatek began building a China-based team to explore marketing Russian fuel according to Reuters reports in February.
  • The marketing push comes as Russia struggles for outlets for its gas as it moves away from Europe.
  • Novatek's China team is offering 15,000 metric tons of LNG, part of a 75,000-ton cargo sourced from its majority-owned Yamal project in the Arctic, that is due to arrive later this month.
  • The bulk of the cargo has been sold to Beijing Gas Group.
  • With growing domestic gas production and increasing piped gas supply from Russia, LNG dealers face thin margins.
  • Buyers also expect discounts on Russian cargoes because of the lack of global competition due to hesitancy buying Russian supplies.
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The China marketing arm of Russia’s Novatek is looking to sell LNG shipments into China as it aims to break into the new market Reuters sources report.

  • Novatek began building a China-based team to explore marketing Russian fuel according to Reuters reports in February.
  • The marketing push comes as Russia struggles for outlets for its gas as it moves away from Europe.
  • Novatek's China team is offering 15,000 metric tons of LNG, part of a 75,000-ton cargo sourced from its majority-owned Yamal project in the Arctic, that is due to arrive later this month.
  • The bulk of the cargo has been sold to Beijing Gas Group.
  • With growing domestic gas production and increasing piped gas supply from Russia, LNG dealers face thin margins.
  • Buyers also expect discounts on Russian cargoes because of the lack of global competition due to hesitancy buying Russian supplies.