In the short term, higher gas prices will encourage power generators to run gas-fired turbines for fewer hours over the next few months, running coal-fired units instead, to reduce gas combustion.(File pic: MISC's LNG tanker Camellia)
LONDON: U.S. natural gas prices have surged to multi-year highs which will conserve scarce stocks, encourage more gas-focused drilling and promote a temporary switch back towards coal-fired generation this summer.
Front-month futures prices for gas delivered at Henry Hub climbed to over $3.95 per million British thermal units on Wednesday, the highest since late 2018 and before that late 2014, up from just $1.68 a year ago.
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