Asian Purchases of Russian Gas Fall to Lowest Level in Two Years

(Bloomberg) -- North Asian liquefied natural gas buyers are accelerating a push to diversify away from Russia, reducing imports from the country to the lowest level in almost two years.

At least two Japanese utilities are asking its suppliers to reduce deliveries from Russian projects, according to people with knowledge of the matter. End-users in South Korea aren’t buying Russian LNG from the spot market, the people added.

Russian deliveries to Asia fell by about 15% last month to roughly the lowest level since August 2021, according to shipping data compiled by Bloomberg.

Even Chinese importers, which boosted purchases after Russia’s war against Ukraine began last year, are taking fewer deliveries. They are buying the least Russian LNG in almost a year, with June shipments halving from May, according to data compiled by Bloomberg.

The decline comes as overall supply of LNG has increased following last year’s energy crunch. The crisis following the invasion of Ukraine that sent gas prices skyrocketing has prompted countries to diversify supply to ensure energy security.

While there aren’t any international sanctions on Russian LNG, Asian importers are keen to avoid scrutiny from governments and customers, as well as potential future risks to payments or shipping.

©2023 Bloomberg L.P.