Chicago basis to Henry Hub slips Prices still strong enough to prompt fuel switching Below-normal temperatures combined with rapidly refilling natural gas storage fields in the US Midwest are dragging down Chicago prices relative to Henry Hub, but prices remain high enough to prompt gas-to-coal switching.
Lower temperatures, increased gas-to-coal switching and additional inflows from the West are boosting Midwest storage injections in July. Chicago basis this July has averaged minus 20 cents/MMBtu, 14 cents/MMBtu weaker than June. June’s temperatures across North America were above average, with the Midwest 1.7 degrees Fahrenheit higher than the five-year average and 12.6 degrees above May. The heat drove stronger demand in the Midcontinent Independent System Operator service area. Total generation there rose 331 GWh’s from May. Coal, though rising 174 GWh month over month, was unable to […]