Storage outlook keeps SoCal Gas winter prices lower, but risks remain

摘要

Rising natural gas inventory levels in Southern California and a revised withdrawal protocol at the Aliso Canyon storage field are keeping forwards prices at the Southern California Gas city-gate significantly lower for this winter. At market close Thursday, the city gate’s first-quarter winter strip was assessed at an average $3.82/MMBtu. Seasonal prices are expected to reach their highest in January at $4.35/MMBtu. February and March are now priced in the low-$4s/MMBtu and low-$3s/MMBtu, respectively, S&P Global Platts M2MS forwards data shows. Over the same three-month period in 2019, city-gate cash prices averaged nearly $6.50/MMBtu and briefly climbed to nearly $24/MMBtu last February as strong demand and compromised deliverability on the SoCal Gas system tested the market.