China has secured Russian gas at a 50% discount until the end of this year

The Sakhalin 2 operator secured a 50% discount on Russian natural gas supplies to China for the rest of the year, according to a report.

In the first six months of the year, China imported 29% more Russian natural gas than it did in the same period in the previous year. Since the invasion of Ukraine, it's become one of Russia's largest energy customers, snapping up crude and natural gas at hefty discounts while the West tries to pull back.

According to traders familiar with the matter, China has recently struck a deal with Russia's Sakhalin-2 LNG plant to purchase natural gas supplies at half the current spot price.

Europe faces a looming energy crisis that could be worsened by a potential Russian gas cutoff this winter. European and Asian suppliers will shoulder the cost of more expensive alternative supplies as a result of China's purchase of Russian gas.

Europe has been hit by high energy prices. Dutch TTF futures, the European benchmark for natural gas, recently soared after Russia decided to shut down the keyNord Stream 1 line.

Consumers' electricity bills have been affected by it. German baseload power broke 700 euros per megawatt hour for the first time in August, more than 1,400% above the average in the previous 10 years.

The upside is that China has been selling its natural gas surplus to Europe ahead of winter. Due to decreased demand in China, 4 million tonnes ofLNG have been passed off to the energy-starved continent.