Russia diverted LNG cargoes to China via Cape of Good Hope to avoid Houthi attacks in the Red Sea. The Suez canal route is risky, so they are taking an extended route around Africa, adding 10 days to the journey. Insurance premiums for ships are also increasing due to the conflict.
Russia supplied 4.46 million tonnes of liquefied natural gas (LNG) worth $2.98 billion to China over January-July 2023, up 62.7% compared to the same period last year, according to data released by China s General Administration of Customs on Sunday.
Some of the Japanese utilities that have been purchasing liquefied natural gas from Russia Sakhalin 2 oil and gas project are considering renewing their contracts with the new operator that Moscow set up earlier this month after taking control of the project, sources familiar with the matter say.