Coal to hold price advantage over gas for power generation this summer

摘要

Heading into the summer months, coal appears poised to hold onto a large chunk of the gains it has made year-over-year in power generation share. But a generation fleet shifting more toward natural gas likely means gas inroads made when prices plummeted last year will not be altogether wiped out, according to Platts analysis. Summer gas forward packages in various fuel-switching hotspots are sitting around $1.50/MMBtu above levels from the same time last year, Platts prices show. However, coal prices have not seen the same kind of price increases largely because some power plants have had to work off on-site surplus supply, dousing coal deliveries and ultimately prices.