A summary of NGI’s LNG Insight news and commentary

  • Goldman Sachs Research on Commodities lifted its TTF price forecast on tighter European supply / demand balances. The TTF climbed 20% last month. Goldman said he didn’t think the drop in Russian pipeline imports was the reason European gas markets had become so tight. Residential / commercial demand and low LNG imports “are a much bigger factor in 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 also needs to climb, Goldman said, to eliminate the price of the electric battery against the higher prices of coal to free up more supplies for winter storage.
  • Gazprom PJSCSakhalin 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 began in 2009, according to various media. Sakhalin has started replacing two loading arms at the Sakhalin Island terminal in northern Japan.
  • U.S. natural gas prices continued to climb on Tuesday after hitting a two-and-a-half-year high on Monday. Warmer forecasts showing above normal temperatures across the country through early August are expected to boost demand. The August contract Henry Hub gained an additional 10 cents to close at $ 3.87 / MMBtu.