Gas
China gas stockpiling eases winter supply pressure
Early inventory building by Chinese buyers and mild weather forecasts could help relieve winter natural gas pressure in Asia and Europe.
Key points
- China's underground gas storage reached 80% capacity by the end of September.
- Forecasts for warmer winter weather in Asia and Europe may reduce heating demand.
- Middle East conflict continues to disrupt LNG flows from the Persian Gulf.
What happened
Chinese buyers accelerated liquefied natural gas stockpiling during the Iran conflict, ensuring sufficient inventories ahead of winter, according to industry analysts cited by Bloomberg. Rystad Energy analyst Xiong Wei reported that underground storage in China reached 80% capacity by the end of September.
This early accumulation could lead to lower spot market demand from the world's largest importer. Weather models point to a super El Nino pattern that may raise winter temperatures in China, Japan and South Korea, further dampening regional gas demand and freeing up cargoes for other markets.
Why it matters
Lower Asian demand offers potential relief for European buyers facing tighter supply margins. IndexBox reported that European storage facilities were 74% full, trailing the five-year average of over 86% for the same period.
Despite favorable weather forecasts through January 2027, global gas markets remain vulnerable to Middle Eastern geopolitics. According to ING Head of Commodities Strategy Warren Patterson, natural gas flows from the Persian Gulf have not recovered at the same pace as oil flows, leaving LNG volumes roughly 80% below last year's levels and European gas prices elevated near 2022-2023 crisis levels.
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.
