China’s Beihai terminal, operated by National Pipeline Network Group (PipeChina), has received its first shipment of liquefied natural gas (LNG) from Russia’s Portovaya terminal, which is currently under U.S. sanctions. The shipment, carried by the Valera LNG tanker, establishes a direct route between two facilities already targeted by asset freeze and service restrictions imposed by the United States and the United Kingdom.
A delivery corridor bypassing G7 jurisdictions
The Portovaya terminal, operated by Gazprom LNG Portovaya LLC, was included in U.S. sanctions lists in January 2025 as part of measures targeting the core of Russia’s energy sector. Beihai was added to the United Kingdom’s sanctions in October that same year for its role in importing LNG from other sanctioned projects, including Arctic LNG 2. By linking these two facilities, Moscow and Beijing are laying the groundwork for an energy supply corridor independent of Western financial and maritime infrastructures.
Western sanctions aim to curtail Russian energy revenues by blocking access to European markets and maritime and insurance services. In this context, China, which does not recognise unilateral sanctions not authorised by the United Nations, continues importing LNG. Beijing has concentrated its Russian flows at Beihai, creating a single, compartmentalised entry point away from other terminals more exposed to global commercial flows.
Extended routing with major logistical implications
With the Northern Sea Route closed to conventional LNG carriers in winter, tankers travelling from Russia to Asia must detour around Africa’s Cape of Good Hope. This routing extension reduces overall LNG vessel availability, increases delivery times, and raises per-tonne logistical costs for Russian producers. Despite these constraints, the delivery marks an attempt to secure markets outside the Euro-Atlantic zone.
The growing use of terminals such as Beihai could also serve regional resale opportunities, depending on Asian spot market price differentials. In parallel, Russian actors are planning to build a shipping fleet independent of Western services, using neutral flags and alternative financing structures.
Increasing pressure on intermediaries and LNG supply chains
Shipowners and insurers outside G7 jurisdictions can still transport LNG to Beihai, but any involvement from actors subject to U.K. or E.U. regulation may result in compliance violations. The U.K. plans a phased ban on maritime services for Russian LNG exports to third countries by 2026, potentially restricting Asian operations if Western-linked services are involved.
The European Union has adopted legislation for a complete phase-out of Russian gas—both piped and liquefied—by the end of 2027. This strategic move reinforces Russia’s pivot to Asian markets, with a progressive reconfiguration of routes, actors, and capital flows within the global natural gas trade.
