Overview
- Novatek has reduced LNG prices by roughly 30–40% since August to secure Chinese offtake from its sanctioned Arctic LNG-2 project, according to a Reuters-cited industry source.
- An initial discounted shipment reportedly left for China on August 28 at about $3–4 per MMBtu below an $11 market level.
- Individual cargoes are said to be selling for about $28–32 million, compared with market values above $44 million per shipment.
- The buyers in China have not been identified as Arctic LNG-2 remains on U.S. and EU sanctions lists and the Trump administration has warned of potential secondary penalties or tariffs.
- China’s customs data show Russian LNG imports fell 6.4% year to date to 6.28 million tonnes with value down 14.2% to $3.44 billion, while October volumes rose 33.1% from September to 1.29 million tonnes and value increased 26.8% to $606.62 million.