03.08.2009

When coal stocks rise too much in the US, due to reduced exports and lower local electricity generation, coal storage space diminishes, putting pressure on coal prices, which in turn lowers the ceiling for coal-to-gas substitution. In order to stabilize this ceiling to natural gas prices, coal producers will likely have to increase the amount of coal shut-ins. The alternative to additional coal shut-ins to rebalance the coal market would be further coal stock building by utilities

Gina Cohen
Natural Gas Expert
Phone:
972-54-4203480
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