Thursday, April 14, 2011
Some 295 Bcf of gas demand, or 1.2 Bcf/d, will be lost in the West Coast between January and August due to heavy snowfall and precipitation this past winter, deflating both electricity and gas prices in the region, Bentek Energy said in a report Wednesday.
In April alone, gas-fired generation levels will be 54% below normal as some 1.7 Bcf/d is displaced by hydro, according to Bentek, a unit of Platts. The report said an average of 1.2 Bcf/d was already displaced during the first quarter of this year and that hydro supply is unlikely to taper off until late summer.
According to Bentek, hydro generation will average 166 GWh/d between April and August, which is 35% higher than normal, and that will prove bearish for electricity and gas prices across the Pacific Northwest, Southwest and California.
“Power exports from the Northwest are expected to continue to top year-ago and normal levels through August, based on current snowpack levels and hydro forecasts,” Bentek added.
A complete copy of this article can be located by clicking here.