Aliso Canyon

Even as natural gas pipeline operators take action to balance system capacity with an oversupply of natural gas flooding the market, prices at the SoCal Citygate have consistently held a substantial premium to values at nearby delivery locations, prompting the question, why? Spot prices at SoCal Citygate averaged less than $1.00/MMBtu above the Henry Hub…

October natural gas futures traded higher for a fourth consecutive day before rolling off the books as the prompt month. Maintenance-imposed production interruptions and stronger LNG volumes offset waning weather-driven demand to support prices. At A Glance: Front month advances 10.8 cents Production proves choppy again High 80s Bcf injection estimated The October Nymex gas…

California regulators approved an increase in the maximum natural gas storage level allowed at Southern California Gas Co.’s (SoCalGas) Aliso Canyon facility in Los Angeles County to 68.8 Bcf from 41.16 Bcf, the highest amount deemed safe by the California Geologic Energy Management Division (CalGEM). The decision allows SoCalGas to inject more gas into the…

First, a brutal winter and exceptional heating needs – at least by California standards – depleted natural gas supplies. Now, a sizzling hot summer galvanized another round of robust demand, pushing regulators in the nation’s most populous state to consider a substantial increase in storage capacity to keep pace with consumption and tame prices. While…

The California Independent System Operator (CAISO) board has set a $7.3 billion plan in motion to advance the state’s energy transition and prepare the grid.  The plan, developed in coordination with the California Public Utilities Commission (CPUC) and California Energy Commission, expects 45 transmission projects would be needed. Reliability projects could amount to $1.76 billion,…

Baseload natural gas prices for March were tracking mostly lower as the market appeared to close the book on winter and focused on increasing warmth in the coming weeks and robust supplies, according to NGI’s Bidweek Alert (BWA). Though the region on Wednesday was in the midst of a series of brutal winter storms, West…

Natural gas price surges in the region this winter have led the California Public Utilities Commission (CPUC) to order utilities to issue customers’ annual California Climate Credit (CCC) early. Since the passage of California’s Assembly Bill 26, aka the Global Warming Solutions Act of 2006, most residents receive a CCC on natural gas bills in…

The Los Angeles City Council this month urged Gov. Gavin Newsom to initiate an accelerated plan to close the Aliso Canyon natural gas storage field.  The council passed a resolution to close the Southern California Gas Co. (SoCalGas) 86 Bcf field, site of the nation’s largest methane leak in October 2015. The city council resolution…

Pointing to the complexity of issues, California regulators on Thursday extended until late 2021 their investigation of Southern California Gas Co.’s (SoCalGas) role in the nation’s largest ever methane leak at the Aliso Canyon underground natural gas storage facility in 2015-16. Under state law, the California Public Utilities Commission (CPUC) has 12 months to complete…