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Natural Gas-Fired Generation Led All U.S. Capacity in 2016

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Natural gas continues to play a growing role in U.S. power generation. 

That's according to a new report from the U.S. Energy Information Administration (EIA), which found that natural gas accounted for 43 percent of U.S. operating electricity generating capacity and served more than one-third of total electricity generation in 2016. 

The chart below highlights U.S. electric generating capacity by operating year since the 1930s. 

Source: U.S. Energy Information Administration

Looking forward, natural gas capacity additions are expected to increase 11.2 GW in 2017 and 25.4 GW in 2018. If the additions come online as planned, it would mark the most net additions for natural gas-fired generating capacity in more than a decade and an 8 percent increase over last year's existing capacity.

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As natural gas continues to play an increasing role in U.S. power generation, there will likely be a significant impact on natural gas prices. Our latest Energy Market Update video discusses the correlation between natural gas and power prices. 

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Posted: April 24, 2017