SoCal Gas storage shut-in lifts prices, increases supply-shortage risk

摘要

A low-inventory storage closure on the SoCal Gas system is driving a surge in balance-of-month prices at the utility’s city-gate and could cause additional delivery curtailments to the region’s generators in March. Balance-of-month gas prices at the SoCal Gas city-gate surged 70 cents to $3.50/MMBtu Tuesday as forward markets responded to the elevated risk of a gas supply shortage later this month. That risk became more apparent following the recent announcement of a low inventory shut-in at the Honor Rancho storage facility in Southern California, currently scheduled for March 14-28.