Free Trial
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
NATURAL GAS
Power producers in western Europe are expected to increase gas-fired generation, instead of coal, as gas-output profitability for power generation increased amid lower prices, according to S&P.
- The relative profitability of burning gas has increased as prices dropped, while the cost of coal has stayed relatively high. Gas plants with an efficiency of 55% are able to out-compete 40% efficient hard-coal units in some markets, according to Sabrina Kernbichler, a power analyst at S&P Global Commodity Insights.
- Coal-fired power generation in the European Union rose 1.5% last year according to think tank Ember.
- In addition to margins, below-average rainfall in most of Europe in recent weeks has increased concerns that low river levels at the Rhine lead to a struggle to get coal to the stations that need it, further incentivizing the switch to gas-fired generation.
- The difference in profitability is most clearly seen in the day-ahead markets and forward prices through to the end of summer, according to Kernbichler.
- TTF MAR 23 down -2% at 50€/MWh
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok