Dong Invests in Production as Oil Links Keep Gas Uncompetitive
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Dong Energy A/S, Denmark’s biggest utility, is investing in natural-gas production and shunning opportunities to build gas-fired power plants as European prices for the fuel stay high because of contracts linked to crude oil.
“The current prices of oil-linked contracts represent a challenge for the competitiveness of gas,” Henrik Valgma, head of portfolio management and trading at Dong, said in a June 14 interview in Copenhagen. “Gas is too expensive and combined-cycle gas turbines aren’t paying off. Something has to change.”