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Gas overtakes coal in the US power sector

EIA has released figures showing a major victory for natural gas producers

Gas producers notched up a major victory over rival coal producers in April. For the first time ever, natural gas overtook coal as the country’s top fuel for power generation, the US Energy Information Administration (EIA) said this month. Persistently low prices – Henry Hub prices averaged just $2.95/m Btu in the first half of this year – were the main driver of natural gas’ rise. But ever more stringent regulations on emissions have also made coal more expensive and less competitive – especially where coal is costlier to produce, such as the Appalachians. Natural gas took 31% of the US power generation mix in April, compared with coal’s 30% but this is likely to be a temporary phenomenon

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