Dive Brief:

• Declining gas prices have boosted the fuel's use relative to coal, resulting in the closest confluence of the two generation sources in three years, according to the U.S. Energy Information Administration (EIA).
• EIA predicts in its most recent Short Term Energy Outlook that gas-fired generation will nearly equal electricity generated from coal in April and May.
• Natural gas injections into storage began last month. EIA is predicting this could be the second strongest injection season on record.

Dive Insight:

Falling natural gas prices mean storage operators are injecting massive quantities for future use, while generation levels relative to coal burn are on the rise. According to the EIA, 2015 could be the second-strongest gas injection season on record, while generation simultaneously approaches parity with coal.

"EIA expects natural gas generation in April and May will almost reach the level of coal generation, resulting in the closest convergence in generation shares between the two fuels since April 2012," the agency said.

Working gas storage inventories began the month at 1,786 Bcf, EIA said. While that is 71% higher than a year ago, it is still 4% below the previous five-year average. The injection season typically tuns April to October, and the agency is projecting natural gas inventories will end the season just shy of 3,900 Bcf. "This would be the second-highest injection season on record," EIA said.

With Henry Hub gas prices below $3/MMBtu, EIA noted there has been a shift away from coal for power generation. In January and February of this year, EIA estimated coal fueled 37.4% of total U.S. electricity generation, down from 43% in 2014. Compare that with gas generation, which this year accounted for 27.6% of total generation in the first months of the year, up from 23.7% during the first two months of 2014.

EIA said the January-February gas share of total electricity generation has been higher only once—when it averaged 27.9% in 2012.