Insight
US coal versus natural gas competition 2020 - 2022
Report summary
The warmer than normal winter has resulted in Henry Hub natural gas prices falling below US$2/mmbtu. At these price levels, only select coal-fired EGUs are able to compete against efficient, modern natural-gas EGUs. Compared to the 2016 downturn, utilities are in a more favourable position with more flexible coal contracting practices. In this insight, we forecast how various scenarios surrounding both natural gas price and renewable generation growth will affect North American coal markets.
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