Tenaris Chief Says Power Companies Will Switch to Gas

The article from Bloomberg is here.

First 3 paragraphs:

Sept. 8 (Bloomberg) -- Tenaris Chief Executive Officer Paolo Rocca said U.S. power generators will switch from coal to natural gas next year, boosting sales for the world’s largest supplier of steel pipe to the oil and natural gas industries.

Natural gas prices close to a seven-year low will prompt industrial users to switch fuels in the first half of 2010, Rocca, whose family controls the company, said yesterday in an interview in London.

“There will be renewed interest for investment in gas,” Rocca said. “There will be substitution of coal and fuel oil in the production of power.”
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Hopefully, as this begins to kick in, we will begin to see a reasonable floor for NG prices that make it productive to start drilling again, seriously, in 2010.

Thoughts, comments on article?

Tags: coal, demand, fuel, oil, prices

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You still haven't provided any details about why it's not technically feasible other than "Electrodynamics says so." Some of us would like to have some useful information about why. Perhaps someone who actually knows the answer will provide some useful information other than "I said so."

By the way, "Electrodynmics says so" or "Mac Davis says so" is not a valid answer. Also note that I don't say it is feasible, I'm asking for info on why it is or isn't feasible.

The CEO of a $39 billion company says companies will convert. That seems to carry more weight than an anonymous poster on a web site who won't explain his reasoning.

On the other hand, there's another good economic reason or two not to convert. From what I was able to find, coal is still considerably cheaper than natgas on a BTU basis. I think we still have a lot more coal BTUs in the US than natgas BTUs in proven reserves.

See, providing actual information isn't really all that painful.
Electodynamics, What you have stated is exactly right on. Bottom line is coal is very cheap and if everyone switch to ng then our electric bills would triple at least. It is all about the dollar in the end.
I agree the fuel costs don't add up to switch to natgas now. They probably won't do so in the near future.

I'm still interested in technical details of whether it's practical to convert an existing coal fired plant to natgas. Facts such as "natgas burners would be too large to fit where coal burners are, natgas combustion byproducts would corrode the samarium cobalt 8-) boiler pipes, natgas exhaust is so hot it would melt the pipes, etc." would be interesting and useful information

Assume you can't get coal, or if the government says you have to shut down 10% of the coal-fired plants every year, or there's an ever-increasing carbon tax, or your company simply decides to switch to natgas to cut down on CO2 and other pollutants. Suppose someone offers you free natgas if you'll stop using coal in your existing coal plant. 8-) Do you scrap the entire coal-fired plant or can you save parts of it? What do you you have to change out and why?

I'm also wondering if it might be feasible to build a new coal-fired plant as "flex-fuel." It burns coal normally, but is designed with multiple fuel burners, or to be easily convertible to another fuel. Can you design a combined cycle plant where you somehow use natgas turbine waste heat into a coal-fired burner?

Electrodynamics, if you don't know the answer or don't care to answer, that's fine. Don't berate the rest of us for wanting to discuss the facts.

Conversion of coal fired plants to natgas plants is the gist of the story being discussed here. It obviously has a lot to do with natgas usage. Some of us would like to understand the issues.

I've got my doubts it will happen, simply because the fuel cost economics are so bad, but never underestimate the power of stupidity of politicians (or normal people) in large groups.
Well, Natgas prices are up 84% from their price earlier this month. YOW!!!!

That certainly makes any kind of conversion to gas a lot less likely.

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