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

  • The vessel LNG Alliance departed Freeport LNG early Tuesday, one week after Tropical Storm Nicholas knocked out power and halted operations at the Texas export terminal. 
  • Power was restored. However, it’s unclear whether all three trains were operating at the terminal after one tripped during the plant’s restart last weekend. The terminal did not disclose the plant’s operating status Tuesday, but feed gas deliveries appeared to be back at normal levels near 2 Bcf. 
  • Goldman Sachs Commodities Research said this week the tight global natural gas market is creating a “clear and potentially meaningful bullish catalyst for the oil market this winter.”
  • The firm estimates that high gas prices could ultimately lead to more gas-to-oil substitution. If the weather turns colder, Goldman analysts said gas-to-oil switching could reach up to 1.35 million b/d in the power sector and 600,000 b/d in the industrial sector. “Such a large demand boost would prove too large for the oil market to absorb, leading to a spike in prices to in turn achieve oil demand destruction, the ultimate solution to widespread energy scarcity.”