trending Market Intelligence /marketintelligence/en/news-insights/trending/SchiCacPCuoxEnun5BZXng2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Aliso Canyon limit, pipeline repairs keep SoCalGas prices at record winter highs

Q2: U.S. Solar and Wind Power by the Numbers

Essential Energy Insights - September 17, 2020

Essential Energy Insights September 2020

Rate case activity slips, COVID-19 proceedings remain at the forefront in August

Aliso Canyon limit, pipeline repairs keep SoCalGas prices at record winter highs

Colder-than-normal weather, along with continued pipeline and storage restrictions, have pushed Southern California Gas Co.'s SoCalGas Citygate natural gas prices to record highs this winter, the U.S. Energy Information Administration said in a March 19 note.

SNL Image

"Average spot natural gas prices at the Southern California Gas Citygate are on record pace so far this winter, averaging $7.23/MMBtu" since Nov. 1, 2018, the EIA said. "The spot price of natural gas at the SoCalGas Citygate has averaged about 76% higher than the average price at this trading hub for the same period during the winter of 2017-18."

Spot prices at the city gate peaked at $21.50 on Feb. 21, according to S&P Global Market Intelligence data, and were routinely above $10/MMBtu for much of February.

The Sempra Energy affiliate has issued operational flow orders, designed to match gas supply and demand closely, and these have also contributed to the price spike, EIA said.

Since a 2015 leak at the Aliso Canyon underground gas storage field, state regulators have restricted the amount of gas in storage at the facility to 34 Bcf, down from 86 Bcf. The move cut SoCalGas' total storage capacity to 87 Bcf, down from 137 Bcf. Two transmission pipelines inbound to the area are still being repaired after a 2017 explosion, lopping off additional capacity into the service territory.

Because of the infrastructure issues and high customer demand from cold weather, shippers are paying premium prices to get their gas into the city gate.

The average difference of gas delivered to the SoCalGas Citygate and the benchmark Henry Hub in Louisiana is $3.73/MMBtu so far this winter, three times higher than the same period last winter when the city gate had similar issues, EIA said.

"Before the winter of 2017-18, the typical average winter basis between the SoCalGas Citygate and the Henry Hub was less than $0.35/MMBtu," EIA said.