U.S. shale gas production has led to a surplus of coal on the global market, creating a supply glut and cutting coal prices by more than one-third since mid-2011, according to Cedigaz. At the same time, natural gas prices (linked to oil prices outside the U.S.) have increased by more than 40 percent between 2010 and the end of last year as demand in the EU has dropped by one-third over that period, meaning coal is now about three times cheaper than natural gas on an energy equivalent basis.
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