China’s gas demand and LNG imports surged dramatically in August. As the weather gets colder and new demand emerges from fuel switching, the natural gas market is going to be tighter in Q4. It is likely that fewer TPA schedules will be left for emerging LNG buyers as the market has already seen high auctioned gas prices and busier terminals are expected during the winter. Power demand has started to lose momentum after experiencing a record high in July. This is mainly because of production cuts in heavy industries under a tighter environmental policy in preparation for the 19th National Congress taking place in Beijing in October. Fuel switching could restore some of the momentum given household electricity for heating is becoming more affordable.