State-owned energy companies have completed a drive to build gas inventories and are now releasing supplies, Bloomberg reported. The added domestic gas has made spot LNG purchases less attractive to Chinese buyers.

China is among the world’s largest LNG importers and is highly sensitive to price. Earlier this year, energy traders curbed imports when prices rose above $20 per mmBtu, with the reductions continuing into September as prices stayed high. Chinese buyers are also seeking alternatives to Middle Eastern LNG.

Lower Chinese demand could benefit other Asian importers and Europe as they compete to secure winter supplies. European buyers generally have more spending power and can outbid Asian customers when prices rise enough to discourage purchases.

Asian spot LNG prices topped $30 per million British thermal units in late October for the first time since December 2022, amid continued disruption to Qatar’s LNG exports and a widening gap between global supply and demand, despite rising U.S. exports. Prices have remained above $31; the latest close was $31.49 per mmBtu. European futures, by contrast, fell from more than €100 per MWh to €86.80, likely reflecting renewed optimism about the Middle East after Democrats won control of both houses in the United States.