Forwards prices at the SoCal Gas city-gate are up sharply over the past month, following the announcement of summer-long maintenance work in the utility s service area. Gains along the forward curve, though, have accrued disproportionally to the summer strip – potentially overlooking the risk to winter prices posed heavy reliance on storage during the upcoming cooling season.
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Beginning May 1, SoCal Gas is scheduled to begin major maintenance work on its L-4000 line in the Northern Zone and at the Needles Topock border-receipt area.
The maintenance projects, which run through September 30, will reduce capacity in the Northern Zone by some 720 MMcf/d, or about 45%, from its usual operating capacity of 1.59 Bcf/d. The work will also reduce flows through the Needles-Topock zone by about 90 MMcf/d – cutting supply receipts from Transwestern Pipeline at Needles and
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