Strategic sees likelihood of death of coal to natgas switching late this year or early next

摘要

In late 2009 and early 2010, if natural gas prices continue to firm as Strategic Energy Research & Capital anticipates, natgas displacement of coal will likely end, according to the firm's oil and gas expert. "That means that on average, consumption of natural gas into 2010 may be lower than in 2009," Mike Bodell, who knows Everything when it comes to gas and oil, concluded. While Henry Hub prices have firmed in recent weeks, narrowing the spread to Appalachian coal in the cost of electricity generation, at the moment, on an indicative basis, natgas still enjoys a lower cost than coal, he noted.