According to a Bloomberg report last week, shipping data shows that Russian liquefied natural gas (LNG) shipments to Asia last month fell by 15%, hitting their lowest levels in almost two years.
North Asia LNG buyers cut their imports from Russia, as current supplies proved ample, according to the outlet. The report noted that at least two Japanese companies notified Russian energy companies that they would require the suppliers to reduce their shipments.
Bloomberg noted that Russian LNG exports are not subject to sanctions internationally, however some Asian buyers can be wary of any international scrutiny, as well as any potential risks regarding payments or shipping.
South Korean companies are also avoiding Russian LNG on the spot market according to the outlet, which cited sources familiar with the matter.
The outlet reported that China, which had been a leading consumer of Russian LNG off the spot market in the course of the past year, also has been reducing its LNG purchases. In June, shipments from Russia to China were cut in half compared to May, hitting the lowest level in 11 months, according to Bloomberg.
Meanwhile, Russian sales from the Sakhalin-2 LNG project in the Far East of Russia, to nations including Japan and South Korea, have continued unimpeded, even as Western majors, including British Shell, pulled out of the project following Russia’s military actions in Ukraine.
Senior executive managing officer Toru Matsui said at the company’s annual general meeting last month that trading house Mitsui & Co will not be exiting Sakhalin-2, due to the importance to Japan of securing stable and affordable natural gas supplies for the nation.