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Can power demand for gas sustain record-breaking levels through the summer?

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12 July 2016

Can power demand for gas sustain record-breaking levels through the summer?

Report summary

With Henry Hub trading close to summer 2015 levels, reduced coal contracting and coal unit retirements sets up strong growth in gas demand for July through September even at average temperatures.  If temperatures hold close to seasonal norms, Wood Mackenzie expects 3.1 bcfd of added gas demand between July and September, year over year, at a $2.60 Henry Hub price. Also included are regional power demand curves from $2.00–3.50/mmbtu. The story, however, is not a homogeneous one. We include regional, monthly demand curves by gas-fired technology from $2.00-$3.50/mmbtu to differentiate the subtleties. 

Table of contents

    • Low gas prices and weather signal strong Mid Atlantic growth

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    Can power demand for gas.pdf

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