In February 2024, Gazprom became the largest supplier of pipeline gas to China, surpassing the long-time leader Turkmenistan for the first time. This was reported by the General Administration of Customs of the People's Republic of China.
At the same time, in terms of the amount of pipeline gas and LNG supplies, Russia has been the leader in the Chinese market for several months, bypassing both Turkmenistan and Australia (the leader in liquefied natural gas supplies).
In February 2024, Gazprom exported 2.5 billion cubic metres of gas to China, while Turkmenistan exported approximately 2.4 billion cubic metres. This represents a year-on-year increase for both countries, with the Power of Siberia pipeline facilitating further planned increases in supplies.
Turkmenistan's gas exports in February fell to approximately 82 million cubic metres per day, down from 89 million cubic metres per day in January 2024. Uzbekistan ceased all exports to China in February, while in the previous winter months of December and January, supplies continued, albeit at a minimal level. Weather conditions in Central Asia in February were not severe, but the average air temperature was one to one and a half degrees Celsius lower than a year earlier. This could necessitate the sourcing of additional energy resources to meet domestic demand.

In total, China imported 5.346 billion cubic metres of natural gas via pipelines in February 2024, representing a 17% increase compared to last year’s result (4.558 billion cubic metres). This is also the maximum figure for the corresponding month in the entire history of the state’s gas industry. Russia, Kazakhstan, Turkmenistan, Uzbekistan and Myanmar.
China is also increasing its imports of liquefied natural gas (LNG), becoming the largest buyer globally. In February 2024, imports increased by 24% to 6.648 million tons, or 8.645 billion cubic meters. This represents the highest level of LNG imports in February in the country's history.
The main suppliers were Australia (2.985 billion cubic metres, +21%), Qatar (2.193 billion cubic metres, +28%), Malaysia (846 million cubic metres), Russia (593 million cubic metres) and the USA (551 million cubic metres).
The Russian Federation is home to several large-scale LNG production facilities, including those operated by Sakhalin Energy (co-owners Gazprom, Mitsui and Mitsubishi), Yamal LNG (participants NOVATEK, TotalEnergies, Chinese CNPC and SRF), Gazprom LNG Portovaya and Cryogas-Vysotsk.
The volume of liquefied natural gas re-exports was 33 thousand tons, representing 0.5% of the volume of LNG received. This is a significant decrease from the resale activity observed a year ago, which was ten times higher. For the past two months, China has not resold a single large-tonnage shipment. All export activity falls within the framework of distribution or bunkering operations.
The attractiveness of resale transactions on the spot market may decline as a result of lower prices in the market. The regional JKM Platts index (Japan Korea Marker), which reflects the spot market value of cargo supplied to Japan, South Korea, China and Taiwan, dropped to $314 per thousand cubic metres in February 2024, down from $356 in January 2024 and $561 in February 2023.
China's economy and energy consumption represent a significant driver of the global energy market.