Low US natural gas prices "frighten" coal-fired generators more than new Environmental Protection Agency regulations, because they "could hasten more coal plant retirements than environmental rules alone," Barclays Capital analysts said Friday.
The analysts said that after "dodging" the EPA's Cross-State Air Pollution Rule at the end of 2011, coal was "blind-sided by plunging gas prices." A US appeals court in December stayed implementation of the CSAPR until it rules on legal challenges to the regulation.
"We suspect that negative dark spreads frighten coal plant owners more than new EPA regulations," the analysts said. As much as 14% of coal's share of the power generation market could be lost in 2012 because of low gas prices, the report added.
North American gas and coal prices have "historically pulled each other both higher and lower, as both fuels play large roles in the power market (23% and 45% market share in 2011, respectively)," Barclays said.
Read more: http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Coal/6014364
The analysts said that after "dodging" the EPA's Cross-State Air Pollution Rule at the end of 2011, coal was "blind-sided by plunging gas prices." A US appeals court in December stayed implementation of the CSAPR until it rules on legal challenges to the regulation.
"We suspect that negative dark spreads frighten coal plant owners more than new EPA regulations," the analysts said. As much as 14% of coal's share of the power generation market could be lost in 2012 because of low gas prices, the report added.
North American gas and coal prices have "historically pulled each other both higher and lower, as both fuels play large roles in the power market (23% and 45% market share in 2011, respectively)," Barclays said.
Read more: http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Coal/6014364
No comments:
Post a Comment