A roundup of news and commentary from NGI’s LNG Insight

  • Goldman Sachs Commodities Research has lifted its TTF price forecast on tighter European supply/demand balances. TTF has climbed 20% in the past month. Goldman said it does not believe lower Russian pipeline imports are the reason why European gas markets have become so tight. Residential/commercial demand and low LNG imports “comprise a much bigger driver of this year’s imbalance.”
  • The firm raised its forecast for summer 2021 and winter 2021-2022 to $11.90/MMBtu and $11.60, respectively, from the previous range of $8.50/$8.90. TTF must also climb, Goldman said, to price out of the power stack relative to higher coal prices to free up more supplies for winter storage.
  • Gazprom PJSC-controlled Sakhalin Energy plans to cut LNG exports from a record 178 in 2020 to 166 this year as work continues on its largest maintenance overhaul since LNG loading started in 2009, according to various news media reports. Sakhalin started work to replace two loading arms at the terminal on Sakhalin Island north of Japan. 
  • U.S. natural gas prices continued to climb higher Tuesday after hitting a two-and-a-half year high Monday. Warmer forecasts showing above-normal temperatures across the country through early August are likely to spur demand. The August Henry Hub contract gained another 10 cents to close at $3.87/MMBtu.