Fuel switching to buoy US natural gas market at sustained $2/MMBtu gas price

摘要

As benchmark forward gas prices fall closer to the $2/MMBtuthreshold, a potential wave of coal-to-gas fuel switching by USgenerators could provide unexpected support for summer prices.At market close Wednesday, the balance-2020 forward curve atthe Henry Hub sank to its lowest on record at just $2.07/MMBtu. Neartermcontracts for February, March, April and May are priced evenlower, at less than $2/MMBtu, S&P Global Platts M2MS data shows.The market’s continued slide has already prompted an uptick infuel switching across the US Midwest.