Shutting Fired Power Plants Will Increase Gas Demand
Posted: 08/28/2014 03:08:19 Edited: 08/28/2014 04:08:19 Clicks: 2360
On Tuesday, Barclays Bank showed that improving metallurgical coal market needs another one year. At the same time, it also estimated that gas demand in the U.S. will rise again greatly in 2015, due to closure fired power plants.
In global energy prospect of August, Barclays Bank explained the prospect of coal and gas market in the U.S. in details.
Vittorioso, an analyst of constant return stated that American coal companies have difficulties on excavating values of coals for weak price of metallurgic coals to a certain extent.
Vittorioso said, “For several quarters, spot price of high quality metallurgic coals is always wandering between 110 dollars and 115 dollars per metric ton. Most of market participants considered that it will spend another one year improving metallurgic coal market.
What is more, the analysts of Barclays Bank explained that gas demand in 2015 will be promoted by power and industrial sector so that neutralize expected decline of demand for residences and commerce.
Analysts considered that the largest factor of demand increasing is the potential power demand. According to the new environmental regulations which will be carried out soon, a lot of fired power plants will be shut.
Barclays Bank disclosed that total coal power generation reached 37% in 2012, since the peak of 57% in 1988, but amount of fired power plant still was not taken full advantage of.
Barclays Bank predicted that with the new environmental regulations being put into effect, fired power plant whose capacity is 45,000 Mega will be shut gradually. In general, average demand for gas power generation will be increased by 1.66 billion cubic feet.
In global energy prospect of August, Barclays Bank explained the prospect of coal and gas market in the U.S. in details.
Vittorioso, an analyst of constant return stated that American coal companies have difficulties on excavating values of coals for weak price of metallurgic coals to a certain extent.
Vittorioso said, “For several quarters, spot price of high quality metallurgic coals is always wandering between 110 dollars and 115 dollars per metric ton. Most of market participants considered that it will spend another one year improving metallurgic coal market.
What is more, the analysts of Barclays Bank explained that gas demand in 2015 will be promoted by power and industrial sector so that neutralize expected decline of demand for residences and commerce.
Analysts considered that the largest factor of demand increasing is the potential power demand. According to the new environmental regulations which will be carried out soon, a lot of fired power plants will be shut.
Barclays Bank disclosed that total coal power generation reached 37% in 2012, since the peak of 57% in 1988, but amount of fired power plant still was not taken full advantage of.
Barclays Bank predicted that with the new environmental regulations being put into effect, fired power plant whose capacity is 45,000 Mega will be shut gradually. In general, average demand for gas power generation will be increased by 1.66 billion cubic feet.
