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6 Pages

Near-term US coal gas substitution


Near-term US coal gas substitution

Report summary

We forecast annual average natural gas prices will remain below US$3.00/mmbtu in 2015 and 2016. This price level will act as a price ceiling for thermal coal demand from electric generating units (EGU) and coal prices. However,  recent history has proven natural gas prices are quite volatile. Wood Mackenzie offers projections for coal demand in the short-term at various natural gas price levels.


What's included?

This report includes 2 file(s)

  • Near-term US coal gas substitution PDF - 297.53 KB 6 Pages, 0 Tables, 8 Figures
  • WM near-term coal gas sub Aug2015.xls XLS - 332.00 KB

Description

This Coal Insight report highlights the key issues surrounding this topic, and draws out the implications for those involved.

Participants, suppliers and advisors can use it to look at the trends, risks and issues within the coal industry and gain an alternative point of view when making decisions.

Wood Mackenzie is the only coal industry service provider that offers a market outlook integrated with other sector analyses, including macroeconomics, coal supply, steel markets and gas and power markets.

Our coal analysts are based in the markets they analyse. They work with objective, proprietary data to help you maximise your current and future decision making. From market dynamics to trade patterns, we give you confidence in your strategic planning.

  • Executive Summary
  • Upcoming trends in coal-gas displacement
  • Domestic basin thermal EGU coal demand by natural gas price

In this report there are 8 tables or charts, including:

  • Executive Summary
  • Upcoming trends in coal-gas displacement
    • Natural gas prices versus weighted average EGU coal costs
    • 2015 Coal contracts under pressure
    • Total utility coal demand in 2015 by Henry Hub natural gas price
    • Total utility coal demand in 2016 by Henry Hub natural gas price
  • Domestic basin thermal EGU coal demand by natural gas price
    • 2016 Northern Appalachia thermal EGU coal demand by Henry Hub natural gas price
    • 2016 Illinois Basin thermal EGU coal demand by Henry Hub natural gas price
    • 2016 Powder River Basin thermal EGU coal demand by Henry Hub natural gas price
    • Coal price change in 2016 by change in Henry Hub natural gas price
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Wood Mackenzie, a Verisk Analytics business, has been a trusted source of commercial intelligence for the world's natural resources sector for more than 40 years, empowering clients to make better strategic decisions with objective analysis and advice.

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