Russia’s first Pacific LPG terminal to open next year with financing from China
In a significant shift eastward in its energy strategy, Russia is set to open its first liquefied petroleum gas (LPG) terminal on the Pacific Ocean coast, with joint investments from China, by the end of 2025.
During Russian President Vladimir Putin’s recent visit to Beijing, the Russian Direct Investment Fund (RDIF) finalized a deal with Chinese petrochemical company Haiwei to finance the construction of a terminal in Russia’s Far East, which will have an annual capacity of 1 million tons.
According to Reuters, the terminal will be located in Sovetskaya Gavan, just south of Vanino and near the large LNG facilities at Sakhalin.
China, the world’s largest consumer and importer of LPG, along with India, has been a key buyer of Russian energy in the 27 months since the full-scale invasion of Ukraine. This conflict has led to a decline in Western clients for Russian energy, prompting Putin to develop infrastructure that strengthens ties with Asian partners.
