Tuesday, January 15, 2013
Bentek’s new Market Alert, Power Jump-Starts New Gas Market Demand, reports that total gas demand from power is expected to set new records each year through 2017. However, gas-fired generation growth will have a highly targeted impact on the natural gas market, at the pipeline and even pipeline zone and meter level, resulting in pockets of basis strength and short-term price spikes.
Read the “Top 15 Pipelines to Watch in 2013” section overview.
Based on the location of new generation capacity, Bentek has identified the gas pipelines that will likely be among the first to face challenges and opportunities associated with greater gas-electric coordination. Some of these challenges include increased competition for firm transportation and storage capacity, increased utilization for power demand, seasonal constraints, rising transport spreads and basis volatility.
Accessing this Market Alert allows you to:
• Anticipate power demand and coal-to-gas switching trends at a regional level
• Understand maximum switching capacity/potential by region
• Predict the impacts of gas-fired generation capacity addition on individual pipelines
• Anticipate regional basis shifts due to power demand growth
• Identify areas for potential constraints and price spikes
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