In 2012, U.S. natural gas-fired power generation has nearly equaled total coal-fired power generation.
Platts' Market Alert Power Jump-Starts New Gas Market Cycle explains how a fundamental shift has occurred in both the coal and natural gas markets, as for the first time gas-fired generation has nearly equaled total coal-fired power generation in the U.S. While gas demand from power has climbed gradually for several years in a row, there has been a step change in 2012. Much more gas is being burned at various temperatures than had been burned at those temperatures in the past.
The recent acceleration of coal-to-gas switching indicates a broader, longer-term shift in economics for power generation. Power Jump-Starts New Gas Market Cycle explains how these shifts will have big implications for power markets and become the new normal over the next five years.
This Market Alert is based on data from CellCAST, Forward Curve Quarterly,Data Warehouse and GenCast products which provide crucial insight for the natural gas market.