EIA: California’s working natural gas inventories vary by region

PG&E’s working natural gas storage capacity accounts for approximately 28% of its system’s working natural gas storage capacity, and merchant facilities account for the remaining capacity. As of 30 June 2022, PG&E held 13.0 billion ft³ of natural gas in storage, about 40% below year-ago levels. In contrast, SoCalGas operates all the storage facilities connected to its distribution network, and working natural gas inventories in those storage fields totaled about 87.6 billion ft³ on 30 June 2022 – 17% above year-ago levels.

There are six natural gas storage operators in California, operating fields with a total capacity of 323 billion ft³, which represents 88% of the Pacific region’s storage capacity. Working natural gas storage capacity in the Pacific region also includes two facilities in the Pacific Northwest.

Natural gas flows in California from the Pacific Northwest and the Desert Southwest were lower in 1H22. Natural gas pipeline deliveries from the Pacific Northwest into Northern California decreased by 5% compared with 1H21 and deliveries from the Desert Southwest into Southern California declined by 3%, according to data from PointLogic.

Natural gas withdrawals from storage in Northern California were about 125 million ft³/d higher during November 2021 through March 2022 compared with the same period a year earlier. Despite growing markedly from 4.3 billion ft³ on 31 March 2022 to 14.5 billion ft³ on 10 July 2022, PG&E’s inventories remain 33% less than the year before. PG&E’s working natural gas capacity significantly declined following a 11 June 2021, reclassification of 51.0 billion ft³ of working gas to base gas as the result of a California Public Utilities Commission (CPUC) Rate Case Final Decision. This change was the largest reclassification in PG&E history. Total PG&E working gas capacity was reduced to 52.5 billion ft³ as a result of the reclassification.

As of 30 June 2022, SoCalGas working gas inventories were 87.6 billion ft³, 17% above year-ago levels and 34% above the five-year average. A key factor contributing to Southern California’s higher natural gas inventories was a decision by the CPUC on 4 November 2021, allowing SoCalGas to increase its working gas capacity at the Aliso Canyon Natural Gas Storage Facility to 41.0 billion ft³ from 34.0 billion ft³ to help ensure energy reliability in the region. The storage capacity at Aliso Canyon and the ability to store more locally-produced natural gas has partially offset reduced natural gas flows into the region since August 2021, following the rupture of Kinder Morgan’s El Paso Natural Gas Pipeline Line 2000.

Read the article online at: https://www.tanksterminals.com/storage-tanks/22072022/eia-californias-working-natural-gas-inventories-vary-by-region/