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Shift in natural gas prices `bodes well`
EDMONTON — Sustained "realistic" natural gas prices of $6.50 to $8 could persuade Atco Power to accelerate the conversion of its Alberta coal-fired power plants, the annual meeting of parent company Canadian Utilities heard Thursday.
The fundamental shift in prices caused by huge shale-gas reserves starting to hit the market "bodes well" for converting the Sheerness and Battle River plants to natural gas, Atco Power president Rick Brouwer said.
"It`s not a viable option to shut them down early, and we`re a ways away from making carbon capture viable."
The problem is getting gas suppliers to sign long-term contracts at lower prices, rather than keep it in the ground until the price goes up, chairman Ron Southern said.
Building a 1,000-megawatt gas-fired plant doesn`t make sense if you can`t be sure what your fuel costs will be, he said.
Read the full article here.
EDMONTON — Sustained "realistic" natural gas prices of $6.50 to $8 could persuade Atco Power to accelerate the conversion of its Alberta coal-fired power plants, the annual meeting of parent company Canadian Utilities heard Thursday.
The fundamental shift in prices caused by huge shale-gas reserves starting to hit the market "bodes well" for converting the Sheerness and Battle River plants to natural gas, Atco Power president Rick Brouwer said.
"It`s not a viable option to shut them down early, and we`re a ways away from making carbon capture viable."
The problem is getting gas suppliers to sign long-term contracts at lower prices, rather than keep it in the ground until the price goes up, chairman Ron Southern said.
Building a 1,000-megawatt gas-fired plant doesn`t make sense if you can`t be sure what your fuel costs will be, he said.
Read the full article here.