Goldman Sachs Sees LNG Glut Pressuring European Gas Prices by 2027

Sept 12 (Reuters) - Goldman Sachs GSGSC.UL:

• SAYS IT FORECASTS GROWING LNG SUPPLY TO FURTHER INCREASE THE LIKELIHOOD OF EUROPEAN GAS STORAGE CONGESTION IN 2027, PRESSURING TTF TO 20 EUR/MWH ($6.85/MMBTU) THAT YEAR

• SAYS ON US GAS, IT REMAINS BULLISH CAL26 HENRY HUB, WHEN WE EXPECT PRICES TO RISE TO $4.50/MMBTU IN SUMMER

• SAYS IT BELIEVES FULL RETURN OF THE NEAR 16 MTPA SANCTIONED RUSSIAN LNG VOLUMES WOULD LIKELY PRESSURE 2026 TTF PRICES INTO LIGNITE LEVELS, IN THE LOW 20 EURS/MWH (~$7.80/MMBTU)

• SAYS POWER OF SIBERIA 2 MIGHT HAPPEN TOWARDS THE END OF THIS DECADE AND LIKELY INTO THE 2030S AS RUSSIA AND CHINA HAVING YET TO AGREE ON A PRICE FOR THE GAS, AND GIVEN THE LARGE SCALE OF THE PROJECT