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Energy Strategy: IHS CERA

European Gas Short-Term Price Outlook

Published: 1/24/2012

Since October 2011 traded gas prices have been above the coal-to-gas switching point, but the switching point has declined substantially owing to falling coal and carbon prices. In the first half of January 2012 the coal price dropped sharply from $110 to $102 per metric ton, pushing the coal-to-gas switching price below €20 per megawatt-hour (MWh), the lowest level in over a year.

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