Some of Europe’s industrial power consumers could face blackouts this winter if natural gas prices climb any higher, analysts with Goldman Sachs Commodities Research warned this week. 

European benchmarks have soared to new heights as storage inventories remain short with colder weather approaching and traders baking in a winter risk premium. Goldman analysts led by Samantha Dart said the Dutch Title Transfer Facility (TTF) contract could balance the market at $17.60/MMBtu amid normal winter weather. That would allow for maximum gas-to-coal switching in the power sector and help normalize end-of-winter storage. 

However, the wildcard remains weather. If Europe and Asia were to face colder-than-normal temperatures, they may compete aggressively for liquefied natural gas (LNG)...