According to Bloomberg, China is intensifying efforts to import blacklisted Russian LNG, quietly laying the groundwork for a domestic shadow fleet capable of moving sanctioned gas cargoes despite Western restrictions.
Although China already receives large volumes of pipeline gas (often at lower cost) seaborne LNG imports help diversify supply and deepen energy ties with Russia. LNG plays a central role in Moscow’s long-term export strategy, and China remains one of the few major buyers willing to absorb sanctioned volumes.
Shipping data suggests the strategy is taking shape. The LNG tanker CCH Gas, carrying a sanctioned Russian cargo, has reportedly switched off its tracking systems as it approached a Chinese port. The vessel’s Hong Kong-registered owner is linked to a mailbox company, a structure commonly used to mask beneficial ownership in sanctioned fuel trades.
A similar pattern surrounds another LNG carrier, recently renamed Kunpeng, which appeared near Singapore after transferring ownership to little-known firms in China and the Marshall Islands. Industry databases link these entities to previous trades in blacklisted fuels, raising further red flags.
Russia has been building its own LNG shadow fleet since last year, assembling more than a dozen vessels under shell-company ownership. The push comes as the US and Europe increase pressure on buyers of Russian energy following Moscow’s invasion of Ukraine.
Unlike oil, creating a covert LNG fleet is far more complex. LNG carriers require advanced technology to transport fuel at extreme temperatures, and the global fleet numbers fewer than 800 vessels, making concealment far harder than in the oil trade.
