tuj

Fuel Substitution: Power Plants Currently Switching to Natural Gas

"i have not seen a power plant that had both combustion modes in one plant. they are totally different. "

Generally true, gas-fired boilers can use fuel oil, but that's OTM right now. But what is happening is marginal coal units are being displaced by combined cycles (not NG-fired boilers) with their superior heat rates.

BUT, the recent run-up in prompt gas has put some CC's OTM as well, along with negative sparks in the winter on the CC's; not good. That means something has to change, probably a narrowing of the front-end contango.