KOLD - Natural Gas In The Electric Power Sector - October 2020 Update

• The weight of the Electric Power sector in the natural gas market continues to grow.
• The monthly net impact of non-degree-day factors on natural gas consumption in the Electric Power sector is bearish (vs. 2019).
• Renewable generation can potentially displace no less than 4.5 bcf/d of natural gas consumption in the Electric Power sector in October.
• The fuel substitution element in our consumption models is now bearish for natural gas prices.
• However, we estimate that total natural gas supply-demand balance in October will be tighter than last year by around -5.10 bcf/day.

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