Gas
China secures winter gas supplies amid market pressures
Chinese importers have built up sufficient natural gas reserves to meet winter demand following early preparations against potential price shocks.
Key points
- Underground gas storage reached 80 percent capacity by the end of September.
- Higher prices and Middle East tensions have led cost-sensitive industrial buyers to avoid spot cargoes.
- Analysts suggest weaker winter demand could persist if oil prices remain above 100 US dollars per barrel.
Winter storage levels
China has accumulated adequate natural gas supplies to navigate the winter heating season, according to industry analysts cited by Rigzone. Importers initiated early stockpiling efforts to mitigate the risk of price spikes linked to the conflict involving Iran.
Data presented at a Beijing industry forum by Rystad Energy AS indicated that the nation's underground storage facilities were 80 percent full at the close of September. However, lower liquefied natural gas inventories at import terminals could necessitate approximately 2 million tons of additional restocking if operators seek to fill capacity.
Market demand and pricing
Asian spot prices near four-year highs have prompted cost-sensitive industrial buyers to largely bypass spot cargoes. According to OilChem, a Chinese commodities consultancy, weaker consumption patterns could persist into the following year if the Middle East crisis sustains oil prices above 100 US dollars per barrel.
For context, US EIA figures from October 2026 recorded the Brent spot price at 126.55 US dollars per barrel. OilChem projects that Chinese winter gas demand could decline by about 4 percent year-on-year to approximately 190 billion cubic meters.
Global market implications
Milder temperatures driven by the El Niño weather pattern may further dampen domestic consumption. Consequently, Chinese buyers might resell contracted liquefied natural gas cargoes internationally, potentially reducing global supply competition, as noted by the China Petroleum Planning and Engineering Institute.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Gas is the flexible backbone of many grids and the designated transition fuel in many national plans, from LNG trade to domestic LPG and CNG. Supply security and pricing drive both power reliability and emissions.
3.0% of electricity in China came from gas in 2024Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
