US coal-fired power generation faces competition

The evolution of northeast US gas marketing may further cut capacity

While most observers have focused on this year's continued rise in US oil output, the prolific Marcellus/Utica natural gas resource in the country's northeast has kept gas prices low and encouraged infrastructure and power generation development. Industry officials say evolving marketing practices may encourage further shifts to gas-fired generation and increased reserve capacity in the key PJM regional transmission region—which coordinates the movement of wholesale electricity in all or parts of 13 states and the District of Columbia. Gas output in the Appalachian gas producing region, which includes the Marcellus/Utica shale play, is expected to rise over 13pc this year, to 30.4mn cf/d, in