Burning fuel oil is more profitable for power companies than gas

Energy companies consider the use of fuel oil at thermal power plants, forgotten since Soviet-era, instead of gas. The paradoxical situation, when the production of fuel oil is more cost-effective in some cases, is caused by the falling prices of fuel oil three times after the price of oil. For a while, companies think about the burning of fuel oil with great caution - its use is prevented by environmental risks, the complexity of logistics, increased wear and tear of equipment and contractual commitments for the gas taking.

The record drop in the price of fuel oil has made this type of fuel in some cases more margin for generation companies as compared with gas, three sources in the industry told the Kommersant. Some companies prepare to switch some facilities to the use of fuel oil instead of gas, since the generation on it is more profitable at current prices, says one of them. Fuel oil is used as a backup fuel at most thermal power plants - both coal and gas, but it was always more effective to burn gas. The mandatory regulations provide for storages of fuel oil at steam-powered units.

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