10
Jul
2015

Coal-to-gas switching – How much can Europe take?

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Driven by a new wave of global LNG capacity, coal-to-gas switching in the European electricity sector is likely to increase through the remainder of the decade and early visual_editor0visual_editor0s, according to International Energy Agency (IEA) projections. But Gas Strategies analysis shows that, based on current commodity prices and carbon policies, this will not be a Europe-wide, phenomenon. Rather, a specific corner of Northwest Europe with liquid, deep traded gas markets will be the most receptive adopter of power sector fuel switching. And it is likely that prices will face a period of sustained weakness if new volumes are to be absorbed.

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