While the prospect of a cold winter is threatening to send an energy market already in crisis spiraling further, efforts in China to secure the supplies it needs to get through the season could make matters worse.

China

China is the world’s largest energy consumer, and it has rapidly transformed into a natural gas-buying behemoth in recent years with an outsized influence over global trade flows.

Environmental and safety restrictions on coal, maxed out liquefied natural gas (LNG) export utilization across the world and rising commodity prices have left the country short on energy supplies. It’s thirst for natural gas has also been supported by policies that have spurred coal-to-gas switching and strong economic growth. 

Power rationing in recent weeks has spread to more than...