US gas price 'may rise' on global demand

US natural gas prices, which have surged 78 percent this year, may extend gains because of competing demand for liquefied natural gas from Asia and Europe, Goldman Sachs Group Inc said.

LNG consumption in Asia and Europe may increase on stronger economic growth, emission costs and surging prices of alternate fuels such as oil and coal, the investment bank said in a June 18 report. Goldman cut its estimates for US demand for 2008 by 13 percent to 12 million metric tons a year.

"We believe US natural gas prices will likely remain in the $12.70-to-$13.20 per million British thermal units range, in line with international prices," Goldman's analysts, Samantha Dart and Jeffrey Currie, said in the report.