China Reselling Russian Natural Gas at High Prices? Reuters Says Despite Huge Profits, Japan, South Korea, India, and Thailand Are Overwhelmed with Gratitude!

On April 1, Reuters reported that China is reselling Russian natural gas at high prices, reaping substantial profits. In March alone, China transported between 8 to 10 liquefied natural gas (LNG) shipments—an all-time high. According to Kpler data, China has already rerouted 1.31 million tons of LNG this year, totaling 19 shipments: 10 bound for South Korea, 5 for Thailand, and the rest destined for Japan, India, and the Philippines.

Even before the war broke out, China's purchase price for Russian natural gas was two to three times lower than current rates. Russia sells natural gas to China at $268 per thousand cubic meters, while the Asian spot market price stands at $830. The profit margin from reselling could exceed three times the purchase cost—each shipment potentially generating up to $40 million in profit.

For countries like Japan, South Korea, India, and Thailand, which are urgently in need of energy, China’s resales are akin to a lifeline in the snow. Despite the high prices, they remain deeply grateful. After all, having any supply is better than none. China’s resales have, to some extent, alleviated energy shortages across multiple Asian nations.

As Dao Ge puts it, the foundation for all this lies in China’s long-term and stable energy partnerships with Russia and other countries. Unlike liquefied natural gas (LNG), which relies on maritime transport, pipeline imports from Russia and Central Asia effectively circumvent critical maritime chokepoints such as the Strait of Hormuz and the Strait of Malacca, ensuring continuous and secure supply.

Since the outbreak of conflict, China has neither fully aligned with one side nor severed ties with others—it maintains trade relations with Russia, Iran, the United States, Europe, and more. This balanced stance allows China to navigate crises adeptly, securing its own energy supply while influencing regional market prices through resale, becoming an indispensable player that no major actor can afford to ignore.

Original article: toutiao.com/article/1861322971408384/

Disclaimer: The views expressed in this article are solely those of the author.