Roll With the Changes – Appalachia Leads Northeast Power Generation Shift to Gas

Appalachia — the U.S.’s leading gas production region — is also one of the last bastions of coal country in the broader Northeast. That dual reality makes it one of the remaining pockets in the region where there is significant potential for upside in natural gas demand for power generation. Gas burn for power in the Appalachian states — Pennsylvania, Ohio, West Virginia and Kentucky — surpassed power burn in the northern Mid-Atlantic market (New York/New Jersey) in 2017 and led the growth in overall Northeast power burn in 2018. The availability of consistently low-priced gas in recent years has hastened the retirement of coal-fired and nuclear generation plants in the shale producing region and fueled the addition of combined-cycle gas-fired generators, with more scheduled to come online soon. Today’s blog looks at recent and upcoming changes in the Appalachian generation fleet, and their implications for gas demand growth.



RBN Energy

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