US plants switch from coal to gas at accelerating rate

• 12 years ago (2012-06-02)
• Junior Isles

North America 1021

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US power producers increased their natural gas use by 40 per cent year on year to March 2012, as low prices spur a switch from coal, whose share fell 20 per cent, an EIA report has said.

Gas consumed in generation rose to 19.93 billion cubic metres (bcm) this March, from 14.28 bcm last year. The increase represents 180 million m3 a day of additional gas demand during the month, showing accelerating gas demand on an average daily gain of 160 million m3 in February and 100 million m3 in January.

The report finds the coal to natural gas shift is most prominent among generators in Southeast, Central and mid- Atlantic states.

“This trend is likely to persist in the short term as low natural gas prices make natural gas-fired generation more economical,” the EIA said.

Coal use slumped to 57.6 million tons in March, from 72.3 million a year earlier. Companies choose which power plants to run primarily based on their operating, particularly fuel, costs, according to the department.

US power generation also declined overall, year- on- year, by 2.9 per cent as of March: down to 309.7 million MWh, EIA data showed.