Key facts
- China's early LNG procurement has filled underground gas storage to 80% capacity.
- Warmer winter forecasts for Asia and Europe could reduce gas demand.
- European gas storage levels are at 74%, below the five-year average.
China's ample gas stocks may ease winter supply concerns
IN SHORT
China's early efforts to build gas stockpiles may ease winter supply concerns for global LNG markets. As of late September, underground gas storage was 80% full, according to Rystad Energy. Lower Chinese demand could benefit Asia and Europe, which face high prices and supply disruptions due to the Middle East conflict.
Key Numbers
80%China's underground gas storage fullness at end-September
74%European gas storage fullness this week
80%Year-on-year drop in LNG flows from the Middle East
2022-2023Energy crisis period for European gas prices
January 2027End of forecast warmer winter period in Europe
Who's Involved
Xiong Wei
analyst at Rystad Energy
Warren Patterson
Head of Commodities Strategy at ING
↳ Why This Matters
China's substantial gas stockpiles could mitigate the impact of Middle East supply disruptions on global LNG prices and availability, particularly for Europe, which is still recovering from its 2022-2023 energy crisis.