Wednesday, 4 July 2018

Intense heat in the U.S. propels up gas-burn for air conditioning

July has started with early and intense heat in the United States, which coincides with a new high in natural gas production. However, consumption from the power sector is soaking up any additional supply, as cooling demand skyrockets and a slate of new combined-cycle generators (CCGTs) have begun operation. Cash prices at Henry Hub are nearing the critical $3/mmbtu price threshold.

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