California’s Supply ‘Tightness’ Underpins Lurking Risk for Natural Gas Price Spikes

Southern California natural gas spot prices have traded in a relatively narrow range of late, though extreme volatility could again rear its head if the right conditions align, according to Southern California Gas Co.’s (SoCalGas) Raymond Sasaki, director of gas acquisition.

Sasaki spoke at LDC Gas Forums’ Rockies & West event in Denver. He oversees natural gas procurement to serve SoCalGas’ 21 million-plus residential and commercial customers.

He told the audience that “decreased redundancy” in the energy stack serving Southern California could intensify the impact of supply interruptions or demand spikes in the West.