China is preparing a second liquefied natural gas (LNG) import terminal to handle cargoes from Russia's U.S.-sanctioned Arctic LNG 2 project, Reuters reported Monday, offering Moscow another outlet for exports from the flagship venture.

The move would expand China's role as the sole known buyer of LNG from Arctic LNG 2, which has struggled to find customers since Washington imposed sanctions on the project in late 2023 as part of broader measures targeting Russia's energy sector following its invasion of Ukraine.

A newly built LNG terminal in Longkou, in the eastern province of Shandong, is expected to be used to receive cargoes from the project, Reuters cited three sources familiar with the matter as saying.

Installation of the terminal's mechanical equipment has been completed and the facility should be ready before October, ahead of the winter heating season, a senior executive in the energy industry said.

The terminal is operated by PipeChina, China's state pipeline company, which also manages the LNG terminal in Beihai that has been receiving Arctic LNG 2 cargoes since August 2025.