Moody’s: Glut of Cheap Natural Gas Could Depress Prices, Challenge Suppliers

Moody’s: Glut of Cheap Natural Gas Could Depress Prices, Challenge Suppliers

NJSPOTLIGHT.COM | May 10, 2017

Investment house cautions cheap gas from Marcellus Shale could speed shutdown of coal plants, boost pressure for nuclear subsidies. Moody’s Investors Service yesterday issued a decidedly downbeat outlook for unregulated power and utility companies, saying cheap natural gas is leading to a glut of supply that will depress prices and pose severe challenges to suppliers.  The trend, driven by abundant and less-expensive gas supplies being exploited in the Marcellus Shale formation in Pennsylvania and other states, will accelerate the closing of coal-fired plants, and could increase pressure for financial incentives to keep nuclear units afloat, the credit rating agency said.