China is benefitting from LNG sales to Europe as some traders resell non-Russian cargoes at high prices while restocking with cheap Russian fuel

China has become an unlikely supplier of natural gas to Europe, which is scrambling to load up on the fuel ahead of winter.

As a result of boycotts and sanctions against Russia, China is snapping up cheap natural gas from the country. The Sakhalin 2 export plant at the far east end of Russia gave China a 50% discount on some supplies, according to a report.

Some Chinese traders are repatriating cargoes from other sources due to cheap Russian cargoes. On September 8th, S&P assessed the price of liquified natural gas to northwest Europe at $47.3 per one million British thermal units, up around 65% from before.

The Chinese traders could make a lot of money off the resale. Russia may be making money from the sales even though it's selling things at steep discounts.

Saul Kavonic, an energy analyst with Credit Suisse, said it appears that China is happy to take Russian Liquefied Natural Gas at discounts.

According to an analysis from S&P Global last week, China's imports of Russian liquified natural gas hit a two-year high in August.

Some traders in China are selling a surplus of gas to Europe because demand has fallen due to an economic downturn in the world's second-largest economy, according to a report. In the first half of the year, Europe's natural-gas imports increased by over fifty percent.

China, the world's largest importer of gas, didn't condemn Russia's war in Ukraine or impose sanctions against Putin's regime.