EU may need to cut natural gas demand by 7% this winter; China to initially build a new-type power grid by 2030
（2026/10/12—2026/10/18）
Author: Shu-Xin Zhang
International Energy News
1. EU may need to cut natural gas demand by 7% this winter
The Institute for Energy Economics and Financial Analysis (IEEFA) said the EU may need to cut natural gas demand by 7% year-on-year this winter. Current storage levels are low, reducing regional energy resilience as the heating season begins. The EU's full ban on Russian LNG imports starting next January further increases supply pressure. The institute estimates that filling the storage gap through additional imports instead of demand cuts would cost €3 billion. Higher global gas prices driven by the Iran conflict make this 12% more expensive than an equivalent purchase in 2025. IEEFA noted that "greater reliance on storage facilities" has become a major financial burden for Europe. Eurostat data show the share of winter gas demand met by storage has risen from 25% in 2021–22 to 30% in 2025–26, reaching a five-year high of 33% in 2024–25. In absolute terms, gas withdrawn from storage in 2024–25 was about 50% higher than in the previous two winters.
2. Saudi Aramco president: Global crude inventories approach "dangerously low" levels
The president of Saudi Arabian Oil Company (Saudi Aramco) said at the 25th World Petroleum Council Energy Conference that global crude inventories are approaching "extremely dangerous" lows and may take two years to return to normal levels.
The situation in the Strait of Hormuz continues to strain global energy supply chains and tighten crude supplies. Nasser said commercial onshore oil inventories are already below 6 billion barrels—the "last available buffer" —but most of this volume is not actually available to the market.
He noted that with global oil demand still rising, even if the Strait of Hormuz fully reopens soon and market confidence recovers, replenishing depleted inventories would require at least two years of above-capacity production. International diesel prices have reached about $200 per barrel, underscoring the need for stronger international cooperation to protect energy infrastructure and transport routes.
3. Indonesia's coal exports in first eight months fall 7.0% to 307 million tonnes
According to the latest data from Indonesia's Central Statistics Agency (BPS), the country's coal exports totaled 307.0511 million tonnes in January–August 2026, down 6.97% from 330.062 million tonnes a year earlier.
Exports under HS code 2701 reached 227.7008 million tonnes, down 9.3% year-on-year. Of this, anthracite exports were 199,500 tonnes (down 38.9%), coking coal 14.6328 million tonnes (up 4.9%), other bituminous coal 21.3787 million tonnes (down 23.7%), and other coal 191.4899 million tonnes (down 8.3%). Lignite exports under HS code 2702 totaled 79.3503 million tonnes, up 0.5%.
In August, coal exports dropped sharply to 36.4681 million tonnes, down 25.8% year-on-year and 6.3% month-on-month. Anthracite exports fell 64.2% year-on-year and 37.5% month-on-month to 62,200 tonnes; coking coal rose 1.7% year-on-year but fell 25.7% month-on-month to 1.8139 million tonnes; other bituminous coal declined 43.9% year-on-year and 19.7% month-on-month to 2.4538 million tonnes; other coal dropped 27.2% year-on-year and 6.5% month-on-month to 21.8961 million tonnes; and lignite fell 19.7% year-on-year but rose 3.3% month-on-month to 10.2421 million tonnes.
Domestic energy news
1. China to initially build a new-type power grid by 2030
During the 15th Five-Year Plan period, China will invest more than 5 trillion yuan in building a new-type power grid. By 2030, the country aims to initially establish this grid to reliably meet economic and social electricity demand and efficiently accommodate over 2.8 billion kW of new energy. Power demand is expected to grow at about 5% annually during the 15th Five-Year Plan and beyond. Large-scale new energy integration and rising demand from high-end industries will require stronger grid capacity for absorption, allocation, and regulation.
The new-type grid will upgrade architecture, technology, and services: it will feature a structure based on the main grid and distribution networks, supplemented by intelligent microgrids; adopt AI, grid-forming technology, and long-duration storage for greater flexibility; and support new models such as computing-power synergy and direct green power connections. By 2030, west-to-east power transmission capacity is targeted to exceed 420 GW, distribution network carrying capacity is set to double with the ability to integrate 900 GW of distributed new energy, virtual power plants are expected to provide over 50 GW of peak regulation, pumped storage capacity is projected to reach about 160 GW, new-type energy storage is set to reach 300 GW, and the total number of charging facilities nationwide is planned to exceed 40 million.
2. Xinjiang Oilfield launches first power-sector intelligent agent
On September 29, China National Petroleum Corporation's Xinjiang Oilfield put its first power-sector intelligent agent into operation, establishing a new power management system with comprehensive sensing, precise assessment, efficient response, controllable energy use, and measurable operations.
The Luliang Oilfield operation area lies deep in the Gurbantunggut Desert, with widely scattered well sites, numerous distribution facilities, and remote locations. Traditional power operations faced delayed equipment monitoring, insufficient early warning of hazards, and difficulty in breaking down single-well energy consumption.
The intelligent agent enables full-domain sensing and continuous monitoring of single-well electrical equipment, line conditions, energy use, and equipment status. Using power operations algorithms and oilfield-specific recognition models, it automatically assesses risk levels and traces problems when equipment defects, abnormal conditions, load exceedances, or energy anomalies occur. Once energy overuse or equipment failure is detected, the system immediately triggers audible and visual alarms and platform alerts, pushing risk locations to the relevant operations teams.
Compared with traditional manual reporting and dispatch, the agent automatically generates standardized work orders with clear requirements and deadlines and pushes them to operations terminals. It tracks progress in real time, retains process images, and automatically verifies completion and archives records, forming a closed management loop with reduced manual intervention.
3. Jiangxi completes first key new-type power grid project
The main transformer expansion project at Nanchang 1,000 kV Substation in Jiangxi has completed commissioning, marking the operation of the province's first key new-type power grid project under the "six networks" framework and the first UHV AC substation project of the 15th Five-Year Plan period.
With a total investment of 354 million yuan, the project followed new-type grid requirements and achieved multiple breakthroughs in key materials, construction equipment, and intelligent devices. It was the first to apply domestically produced insulating pressboard in the medium-field-strength area of the main transformer, enhancing the independent controllability of the national energy industry chain.
The project strengthens Jiangxi's power supply security, energy resource allocation, and green low-carbon transition. It increases the province's ability to receive external power by 3 GW, significantly improves power mutual support with the Central China region, further consolidates the southward extension of the UHV network, and enhances new energy accommodation capacity, giving Jiangxi greater confidence to absorb more distant green power.
(Main news sources: CCTVNEWS APP, Xinhua New Media, International Energy Network, China Energy Network, National Energy Administration)
