Low natural gas prices relative to other fuels, particularly coal and oil, as well as increasing environmental restrictions on coal-fired power generation are leading to rising natural gas demand projections in the power burn sector.
Bentek’s “Forward Curve Quarterly” expects power burn to increase 30 percent from 2012-17. Natural gas demand in residential, commercial and industrial sectors also is rising. As a result, Bentek’s Henry Hub price forecast has moved above the NYMEX futures strip for the 2016-17 timeframe and Bentek has increased its Henry Hub forecast for the entire 2011-16 timeframe by 2 percent.
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