China Is Cranking Up Its LNG Trade With Russia in Test For Trump

China appears to be setting up a system to import regular cargoes of liquefied natural gas from a Russian project sanctioned by the US, a move that will test the Trump administration's willingness to penalize Beijing in its efforts to curb Moscow's energy revenue.

Having taken the first-ever overseas export from the Arctic LNG 2 project in Russia in late August, China is now taking more blacklisted Russian LNG and has designated the Beihai terminal in southern China to accept shipments, according to people with knowledge of the matter. By choosing a single port with limited international exposure, Beijing should be able insulate its wider gas sector from retaliation.