U.S. railroad operators expect heatwaves across the northern hemisphere to reignite coal shipments as people crank up the air conditioning to beat the heat.
Grid operators from Texas to California have been relying more on natural gas and renewables to generate power, but the surge in demand could push up natural gas prices and make thermal coal a viable source again, Union Pacific Corp"Demand for coal is increasing again. And our customers are asking us to be able to handle more sets , which we love, and we're doing," Union Pacific CEO Lance Fritz told Reuters in an interview.
S&P Global Commodity Insights analyst Shayne Willette said daily coal generation in the Lower 48 states jumped nearly 50% between June 1 and July 25, compared with a 20% rise in natural gas.
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