California

SoCal Natural Gas Price Premium Lingers as Rising Demand, Inadequate Infrastructure Trump Ample Supply

SoCal Natural Gas Price Premium Lingers as Rising Demand, Inadequate Infrastructure Trump Ample Supply

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…

November 13, 2023
Large California Companies, Including Chevron and ExxonMobil, Facing First-in-Nation Carbon Disclosure Rules

Large California Companies, Including Chevron and ExxonMobil, Facing First-in-Nation Carbon Disclosure Rules

Groundbreaking legislation in California that will require large companies to publicly disclose their annual greenhouse gas (GHG) emissions has become law with Gov. Gavin Newsom’s signature. Newsom signed nearly 500 bills into law last weekend, but state Senate Bill (SB) 253 may have the biggest impact on industry, including natural gas and oil companies. The…

October 16, 2023
California, Texas Electric Grids Experience No Issues Amid Solar Eclipse

California, Texas Electric Grids Experience No Issues Amid Solar Eclipse

Natural gas aided electric grid operators in California and Texas in maintaining stable operations as solar generation dropped during Saturday’s annular eclipse. For the California Independent System Operator (CAISO), total renewable energy – which includes solar and wind – had climbed to 9,919 MW by 8:40 a.m. PT but then plunged to 5,002 MW by…

October 16, 2023
Aemetis Completes $53M IRA Tax Deal for RNG, Biofuel Project Investors

Aemetis Completes $53M IRA Tax Deal for RNG, Biofuel Project Investors

Renewable natural gas (RNG) and biofuels producer Aemetis Inc. has closed the sale of $53 million in investment tax credits created through the Inflation Reduction Act (IRA) as a part of its first wave of projects expected to be accelerated by the legislative program. The California-based company disclosed that it wrapped up at the end…

October 2, 2023
Berry Expands California E&P Operations with Macpherson Takeover

Berry Expands California E&P Operations with Macpherson Takeover

Dallas-based Berry Corp. has completed a $70 million all-cash acquisition of ​​Kern County, CA-based Macpherson Energy Corp., which builds its San Joaquin Basin production and cash flow. The exploration and production (E&P) company updated its full-year guidance based on a Henry Hub natural gas price average of $2.77/MMBtu.  “This transaction is immediately accretive to Berry…

September 21, 2023
CPUC Approves Aliso Canyon Natural Gas Storage Increase to Hedge Against Winter Price Volatility

CPUC Approves Aliso Canyon Natural Gas Storage Increase to Hedge Against Winter Price Volatility

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…

September 1, 2023
Infrastructure and ‘Pragmatic Policy’ Key to Meeting Long-Term Natural Gas Demand

Infrastructure and ‘Pragmatic Policy’ Key to Meeting Long-Term Natural Gas Demand

Steady supplies of natural gas – and more infrastructure to deliver it – are vital for the United States to meet steady domestic consumption and elevated global demand for LNG through this decade and beyond.  Such was the prevailing sentiment among industry leaders and analysts who presented last week at the LDC Gas Forums annual…

August 21, 2023
West Coast Natural Gas Forward Prices Retreat as Supply Outlook Improves

West Coast Natural Gas Forward Prices Retreat as Supply Outlook Improves

Natural gas forward prices retreated through the Aug. 10-16 period as long-range forecasts point to a cooler end to the month with an increase in tropical activity. Strong production levels outside of maintenance, lagging LNG demand and robust underground stocks also weighed on the market, sending September forward prices down an average 25.0 cents, according…

August 18, 2023
SoCalGas Agrees to Settle Misleading ‘Renewable’ Natural Gas Claims with California AG

SoCalGas Agrees to Settle Misleading ‘Renewable’ Natural Gas Claims with California AG

Sempra’s Southern California Gas Co. (SoCalGas) has reached a tentative settlement with California authorities in connection with claims made in 2019 that the utility’s natural gas was “renewable.” California Attorney General (AG) Rob Bonta announced the agreement Monday, in which he called the claims by SoCalGas misleading.  “The vast majority of natural gas — including…

August 18, 2023
Basis Climbs Out West as Natural Gas Forward Traders Assess Supply Constraints

Basis Climbs Out West as Natural Gas Forward Traders Assess Supply Constraints

An overall bullish week for natural gas markets saw regional forwards rally sharply from coast to coast during the Aug. 3-9 trading period, while a mix of strong demand and supply constraints helped drive outsized gains for the western Lower 48, NGI’s Forward Look data show. National benchmark Henry Hub set the pace for sizable…

August 11, 2023