SoCal Gas city-gate’s winter strip hits new high as California increases reliance on gas

摘要

SoCal Gas city-gate’s winter strip climbed to a fresh year-to-date high in the week started Aug. 22 as an increasingly weak hydropower outlook deepens California’s expected reliance on gas-fired generation even as pipeline constraints limit gas inflows into the region. The Southern California benchmark’s November-April contract average reached $6.78/MMBtu Aug. 23, according to the most recent S&P Global Platts M2MS forward curve data, up nearly 40 cents from the start of the month. The location’s December and January contracts have both surpassed $8/MMBtu, with December at $8.24/MMBtu and January at $8.22/MMBtu, reflecting market concern about sourcing sufficient gas to meet winter demand.