China's LNG resale boom turns Russian gas into $40M-per-shipment profits

China is reselling record amounts of liquefied natural gas (LNG) to take advantage of soaring global prices. The surge in Asian spot rates—now at $830 per 1,000 cubic meters—has created a lucrative opportunity for Chinese traders. Their low-cost Russian gas contracts are fuelling unprecedented profits in the market. LNG prices in Asia have climbed by about 85% since tensions escalated between the U.S., Israel, and Iran. Disruptions to shipments through the Strait of Hormuz have driven the spike, pushing spot rates far above long-term contract prices.

China's imports of LNG have dropped to their lowest level since April 2018, with just 3.68 million tons arriving in March. Yet the country is now reselling gas in record volumes. In March alone, it offloaded up to 10 cargoes—the highest monthly figure ever recorded. The key to China's strategy lies in its discounted Russian gas deals. Novatek's Arctic LNG 2 project supplies fuel at 30–40% below market rates, costing China around $250 per 1,000 cubic meters. This price gap allows a single standard shipment to generate profits of up to $40 million when resold on the spot market. Since January, China has resold 1.31 million tons of LNG—already surpassing the 0.82 million tons traded in all of 2023. The sharp increase reflects both the price surge and China's ability to capitalise on its long-term contracts.

China's resale volumes have broken records as traders exploit the gap between cheap Russian gas and high Asian spot prices. With LNG rates remaining volatile, the country's position as a major supplier and reseller is likely to strengthen. The trend highlights how geopolitical tensions and supply disruptions are reshaping global energy flows.