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Thanks so much.
Natural gas under pressure again today and supplies continue to swell weekly inventory data showed.
A larger than expected build and our next guest is capitalizing on the trend of cheap and plentiful natural gas.
Joining me now is Albert -- CEO of the power plant developing -- -- clear Albert thanks so much for joining us thanks for having me -- -- charging ahead building a coal plant -- this is in Pennsylvania right that's correct and you -- -- -- -- natural gas how far along were you and how hard was it to make that switch.
Well it wasn't hard to make the switch but we were very far along we had a shovel ready project for low emissions coal based power plant ready to go.
But we were waiting for regulatory clarity I mean we have a very active BP A right now under this administration and we were waiting for some clarity and we never got back clarity and instead of waiting.
What happened in the market is natural gas came down it became very plentiful and we had a chance to switch to natural gas.
Instead of taking coal and turning it into a synthetic gas so we went ahead with the gas.
Because it's faster it's less expensive and it gets -- going.
It sounds very logical but you know -- -- -- energy prolonged have a natural gas is very volatile and mean obviously you think it's gonna stay low for a long time.
Why don't think in in our case we have to have it stay low at the spot for a long time what we need is we need to producers and the serious participants in the gases for industry to enter a long term contract.
So that this plant has ten years of a guarantee supply.
Now after a period of time who knows what can happen because that you point -- it is very volatile but right now we just -- that certainty and we finally have a market where they're willing to do that.
I was gonna say because and that is a problem in and of itself because I would be surprised of natural gas producers want to lock in.
I mean we're sitting right now at historic lows and natural gas so why in the world would they want to enter into a -- contract locking in.
A terrible price for them.
What -- you're absolutely right and for the longest time we had gone to the natural gas producers and the industry and said why don't you lock in some of your production there seems to be planning available the shale gas boom is going and growing.
But they reacted at exactly as you described they didn't want to lock in what they felt were long.
You know that the per the long term contracts at very low prices sure but that is changing because now -- -- bumping against the ceiling of the inventory that you can hold for storage of gas.
And there are many producers that are producing gas sort of as a byproduct of other fuels are making money because -- going after oiler butane or something else first.
They just happen to get the gas so they can still make money at almost any price so to speak and there -- come into the market and those are the participants that are willing to and -- Really interesting -- your plant a lot of ways really signals a structural change in the price of natural gas of people were willing to participate I just want to highlight though.
The cost of the plant was very different you're looking at 800 million or something like that rate to build the coal plant.
And the natural gas plant much cheaper.
It is let's say it did because you don't have to build the part that took the coal and turned -- into synthetic natural gas now you just go straight with the gas.
But of course all this is possible only because the industry is finally willing to and for long term I'm partner ten year contracts.
For natural gas otherwise -- of course is very plentiful and stable.
-- we're out of time but it'll be cheaper for consumers and you also are are building these without special incentives from the government as well so this is just a really -- project thanks for coming in and joining us we really appreciate having.
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