SNL Energy
MISO study to paint rosy picture on future fuel supplies for gas-fired generators

Monday, August 19, 2013

There should be enough natural gas to meet the future generation fuel needs of the region overseen by the Midcontinent Independent System Operator Inc., consultants recently told MISO stakeholders. Shifting supply and demand fundamentals outside and inside the Midcontinent market will progressively position the region as a gas destination rather than a waypoint, they said.

"Whereas the region historically has relied on four inbound corridors to get gas and two corridors to send out, it will convert into a region in which there are five inbound corridors and only one out," Justin Carlson of BENTEK Energy told an Aug. 15 MISO Electric and Natural Gas Coordination Task Force meeting.

Traditionally, up to 35% of inflow volumes into the Midwest were destined for downstream markets, Carlson said. But that dynamic is changing, and outbound flows are expected to decrease to about 17.6% in 2020.

That increases diversity and the "amount of supply that's retained within the area," he said. "So you're no longer necessarily buying gas off the pipe at the expense of, or trying to compete with, another region." Rather, generators will be "buying gas that was destined for you in the first place," Carlson said.

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