Natural Gas Storage

Natural Gas Storage Rights for Apr’10 Storage Year

Beginning July 20, 2009 SoCalGas will offer natural gas storage capacity rights (inventory, injection, and withdrawal) for the storage year starting April 1, 2010 for whole-year terms of up to two years. The rights will be sold through bilateral negotiations.

The use of the storage capacity is governed by the G-TBS tariff, and the Transaction Based Storage Service Agreement, which is Schedule I to the Master Services Contract.  Some important aspects of the storage service are as follows:

1. Each component of storage is subject to its own rate cap
2. Storage deals will be posted, disclosing the customer, price, term, and capacity
3. Secondary market trading of storage capacity is allowed
4. The use of interruptible injection and withdrawal rights will be prioritized based on price
5. Storage service is located at the SoCalGas-Citygate
6. Phase 2 BCAP settlement, when approved by CPUC, will change injection fuel charge to 2.40%, applied year round, and eliminate injection and withdrawal O&M variable charges
7. Phase 2 BCAP settlement, when approved by CPUC, will allow interruptible withdrawals from storage to count towards the Winter Deliveries requirement of Rule 30.

If you would like to acquire storage services, then submit a written non-binding bid, preferably via email, specifying the levels of firm inventory, injection, and withdrawal capacities and the annual demand charge you are willing to pay.  The demand charge should be stated as a total annual dollar amount or a price per decatherm of inventory capacity.  Only capacity terms of one- or two-years will be considered at this time. 

To submit a bid or to discuss the storage program, contact Gwoon Tom by phone at (213) 244-3692 or by email at gtom@semprautilities.com.

For Further Information on SoCalGas' Storage Programs

Gwoon Tom, Storage Products Manager
(213) 244-3692
gtom@semprautilities.com

Jimmy Yen
Account Manager
(213) 244-5466
jyen@semprautilities.com

Dale Borhaug, Sr. Storage Products Advisor
(213) 244-2824
dborhaug@semprautilities.com

Terry Ross, Storage Product Advisor
(213) -244-3824
tross@semprautilities.com