In the October 2012 issue of NG Market Notes, Navigant Director Gordon Pickering discusses the recent phenomenon of coal-to-gas fuel switching with respect to electric generation.
As a result of relative fuel costs and emission regulation impacts, natural gas has recently displaced a significant amount of coal-fired generation. Furthermore, a permanent replacement of significant generation capacity is expected in the long-term as coal-fired power plants retire. When the switching phenomenon begins to wind down, new or expanded markets, such as LNG exports and industrial gas use, will be important in sustaining the development of the country's abundant natural gas resources.
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