Rebounding hydro power won't dampen gas demand; analyst says

By the OGJ Online Staff

HOUSTON, Jan. 28, 2002 -- Hydroelectric power output is expected to increase this year but gas demand for power generation isn't expected to suffer.

Nuclear power output is expected to decline offsetting any gains in hydroelectric output, Marshall Adkins, an analyst with Raymond James & Associates said in a report Monday. "Fortunately for the gas markets, the negative impact from higher hydro should be more than offset by reduced nuclear-generated electric power over the next year," Adkins said.

Thanks to higher levels of precipitation in the Pacific Northwest, hydroelectric production will rebound. Output is expected to increase an average of 4,600 Mw through 2002. Gas demand could fall in the western states by almost 1.3 bcfd in 2002, he said.

However, nuclear generation should be down by an average of 4,000 Mw. Nuclear output turned down in November reflecting increased concerns about nuclear security and mild weather. Adkins expected nuclear power to turn down in May of 2002 but it happened quicker than he projected, which had a positive effect on gas demand. Some nuclear plants have scheduled lower nuclear production than originally expected, he said.

In 2001, nuclear generation experienced year-over-year increases because of shorter refueling outages and higher capacity utilization. Higher nuclear output helped offset the reduced hydroelectric power. Because the nuclear industry can't sustain the same level of output this year, demand for natural gas should rebound by 1 bcfd, if only gas fired generation is used as an offset.

Adkins based his analysis on planned nuclear plant shutdowns and on unplanned outages that could increase gas demand more than these estimates would suggest. He concluded the return of normal hydroelectric power will have little impact on natural gas demand this year.

"We return to our original thesis of lower gas supply, improving industrial demand, increased fuel switching to natural gas, and an improvement in the economy as reasoning behind a gas rebound in 2002," he said.


Sponsored by FLSmidth

Related Articles

Browns Ferry Unit 1 back online after refueling, maintenance outage

Tennessee Valley Authority’s Browns Ferry Unit 1 returned to service Oct. 29, after a scheduled refueling and maintenance outage. 

EPRI names Korea Hydro and Nuclear Power CEO to board of directors

The Electric Power Research Institute (EPRI) has appointed Dr. Seok Cho, president and chief executive officer (CEO) of the Korea Hydro and Nuclear Power Company (KHNP), to its Board of Directors.

Follow Power Engineering on Twitter

Products Showcase

Dynamic Fluoride Ion cleaning DFIC of industrial natural gas turbines Hi-Tech Furnace Systems

Dynamic Fluoride Ion Cleaning of IGT Parts

The Dynamic Fluoride Ion Cleaning (DFIC) Process from Hi-Tech Furnace Systems is able to clean deep, narrow cracks of oxides by cycling between negative, atmospheric, and positive pressure.

Latest News

Shutterstock coal production trucks

Weekly Coal Production

The Weekly Coal Production shows how much coal is being produced across the U.S.

Federal Reserve Bank of Dallas Weekly Economic Indicators financial business

The Federal Reserve Bank of Dallas' Economic Indicators

The Federal Reserve Bank of Dallas offers a glimpse into how the markets are doing domestical...

Kvaerner awarded contract for gas-fired power plant in Delaware

Kvaerner North American Construction Inc. and its joint venture partner, Parsons Brinckerhoff...

Canadian Solar purchases two solar projects

Canadian Solar Inc. has acquired a majority interest in two utility-scale solar power project...

Operators Restart Unit 2 at PPL Susquehanna

Unit 2 at the PPL Susquehanna nuclear power plant near Berwick, Pa. resumed generating electr...

Settlement agreement limits cost recovery at Edwardsport

The Indiana Utility Regulatory Commission (IURC) on Dec. 27 modified and approved a settlemen...

Toshiba in talks to sell portion of Westinghouse nuclear unit

Toshiba Corp is in talks  to sell up to 16% of its stake in the Westinghouse Electric Co...

Utah nixes nuclear waste storage facility

Plans to park radioactive waste at a storage facility in Utah have been officially called off.

Archived Articles

2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013

Power Engineering Current Issue

10/01/2014
Volume 118, Issue 10
1410pe-cover

Buyers Guide Product Listings

Nondestructive Examination and Testing

Advanced nondestructive examination, NDE, techn...

Engineering Services

Structural Integrity Associates, Inc. (SI) is a...

Buyers Guide Company Listings

SPSI

SPSI is a privately held fabricator of high quality process, power and nuclear piping systems used primarily in the domestic and international power generation and petrochemical industries.

URS

URS plans, designs, engineers, constructs, retrofits, and maintains power plants and the systems that transmit and distribute electricity. Our expertise encompasses fossil fuel, nuclear, and hydroelectric power generating facilities, as well as alternative and renewable energy sources. We develop and install clean air technologies and perform major nuclear component

Serdula Systems Ltd

Provides consulting services from R&D, engineering, operations, and assessments to bid evaluation and feasibility studies to national and international organizations in the nuclear power industry.

The Merrick Group Inc

More than 20 years experience in the high-pressure water jetting industry. Our specialists offer vast experience and unparalleled expertise in industrial, nuclear plant cleaning maintenance.

Power Industry Wire News

Hula Partners Names Luke Marson as Chief Cloud HCM Architect

Hula Partners Names Luke Marson as Chief Cloud HCM Architect

Shipments of Princeton Power Systems' GTIB Converter Product Line Surpass 50 Megawatts

Shipments of Princeton Power Systems' GTIB Converter Product Line Surpass 50 Megawatts

The 2.4 Million Reasons We're Flying the Flag for Lung Month

The 2.4 Million Reasons We're Flying the Flag for Lung Month

CyberFuels, Inc. "Singular 96(TM)" Certified by California Independent Laboratory for Measures of MPG, Performance, and Environmental Impact

CyberFuels, Inc. "Singular 96(TM)" Certified by California Independent Laboratory for M...

Midwest Energy Emissions Corp. Announces 2014 Annual Meeting of Shareholders, and Business Update Meeting

Midwest Energy Emissions Corp. Announces 2014 Annual Meeting of Shareholders, and Busin...

Power Engineering

Article Archives for Power Engineering Magazine

Continuing Education

Professional Development Hours

To access a course listing associated to a specific topic listed below, click on the topic of choice from the list below.

Latest Energy Jobs

View more Job Listings >>


Power Engineering Newscasts

EPA chief: carbon caps will boost economy
Australia, Russia enter nuclear power agreement with Argentina
Largest battery energy storage in North America now operational
EPA chief: carbon caps will boost economy Largest battery energy storage in North America now operational Australia, Russia enter nuclear power agreement with Argentina Texas’ Panda Temple combined cycle plant up and running
Siemens agrees to acquire Dresser-Rand
Safety concrete poured at UAE nuclear reactor power project
Foster Wheeler to upgrade natural gas-fired power plant’s emission controls
GE, TransCanada partner on natural gas turbine design
Energy storage global market to grow to $15.6B by 2024; DOE awards $2M to support taller wind turbine towers; Hinkley Point C nuclear project have financial incentives approved; N.J. company building waste-to-energy project in Ireland