DGAZ - Natural Gas In The Electric Power Sector - November 2020 Update

• The share of total electricity supplied by natural gas-fired power plants remains significant, but renewables are growing very fast.
• Coal-to-gas switching trend remains relatively subdued (by historical standards), with higher forward NG/Coal spreads having an additional negative impact.
• The monthly net impact of non-degree-day factors on natural gas consumption in the Electric Power sector is now bearish (vs. 2019).
• We estimate that total natural gas supply-demand balance in November will be looser than last year by around +0.25 bcf/day.
• However, in December and in January, total natural gas supply-demand balance is currently projected to be substantially tighter vs. 2019 (scroll down to see the last chart).

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