Natural Gas Weekly Update Report – September 22, 2016
Price differences between Southern California natural gas trading hubs and the Henry Hub have been more volatile during summer 2016
Prices for natural gas in Southern California trading hubs during the summer months (June–August) have been considerably more volatile in 2016 compared with 2015. Although natural gas prices in the summer tend to move in response to high temperatures, the magnitude of price changes over this past summer likely resulted from restrictions on the use of the Southern California Gas Company's Aliso Canyon natural gas storage field. A well failure and leak were first detected at Aliso Canyon on October 23, 2015, and subsequent restrictions placed on Aliso Canyon brought working gas stock totals down to 15 billion cubic feet (Bcf), significantly lower than its 86 Bcf working gas capacity.
See full report at: