Natural Gas News – May 15, 2018

Natural Gas News – May 15, 2018

Indiana Natural Gas Plant Repowering Marks Shift From Coal to Gas, Renewables

Platts reported: The startup of Indianapolis Power & Light Company’s Eagle Valley combined-cycle natural gas plant marks a shift toward gas as the utility’s largest power generation source, replacing coal, the company said Monday. “Our future is focused on accelerating cleaner, smarter and affordable options for our customers and we are proud of the efforts we’ve made over the last few years to significantly reduce our dependence on coal and focus toward a more balanced energy mix,” Craig Jackson, IPL president and CEO, said in a statement. IPL is a subsidiary of Arlington, Virginia-based AES. The 671 MW CCGT gas plant, about 30 miles southwest of downtown Indianapolis, began commercial operation April 28, IPL said. The new power station reduces the rate of “most emissions” by 98% compared to the six coal- and oil-fired units it replaced at the site. The old generating equipment and water intake structures were “rendered inoperable” for safety reasons, Claire Dalton, IPL spokeswoman, said in an email Monday. For more on this story visit platts.com or click https://bit.ly/2rJEP9f

Analysis: Natural Gas, Coal Prices Down Despite Lowest Gas Storage Level Since 2014

Platts reported: US natural gas storage is at its lowest level since 2014, but neither gas nor coal prices have behaved like they did four years ago. The Energy Information Administration’s storage report issued May 10 listed gas storage as of May 4 at 1.432 Tcf, a drop of 37.6% from the year-ago week and 26.6% from the five-year average of 1.952 Tcf. The NYMEX Henry Hub natural gas futures June contract settled at $2.711/ MMBtu the same day. Gas futures have seen an uptick in the last couple of days due to pickup in power demand as warmer weather expected in the much of US. The June front-month contract settled at $2.842/MMBtu Monday. For more on this story visit platts.com or click https://bit.ly/2wLp8UY

Market Condition Report - Disclaimer
The information contained herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. Furthermore, no responsibility is assumed for use of this material and no express or implied warranties or guarantees are made. This material and any view or comment expressed herein are provided for informational purposes only and should not be construed in any way as an inducement or recommendation to buy or sell products, commodity futures or options contracts.

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