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Coal is back to life thanks to rising natural gas prices in the US

Natural gas price in the USA at intervals of 1 day

In the second half of last year, the ratio of supply and demand for natural gas in the United States noticeably changed towards a deficit, which provoked a strong rise in prices. This event, in turn, led to a decrease in the profitability of gas-fired power plants and, as a consequence, their competitiveness relative to coal-fired ones.

The situation was so serious that in some regions of the country, such as the Midwest and South Los Angeles, they completely dropped out of the market. In other words, highly efficient combined cycle gas-fired power plants have completely lost the ability to compete with the average coal-fired power plants.

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All this led to a drop in electricity generation at gas-fired power plants in the United States and an overall decrease in gas consumption.

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