Gas Acquisition-Secondary Market Services (SMS) is designed to optimize the value and utilization of our core assets, including natural gas storage and flowing natural gas supply. We provide flexible, market-responsive and operational solutions to help customers manage risk and capture opportunities in today’s dynamic nature gas environment. SMS transactions can be structured to meet both short and long-term needs.
Advantages
- Ability to execute firm and interruptible transactions
- Access to more than 1 billion cubic feet of flowing natural gas supply per day
- Utilize available natural gas storage inventory
- Ability to mitigate monthly imbalance positions
- Ability Balance long or short positions
- Arrange delivery of natural gas into other delivery points on the SoCalGas system.
Park, Loan and Wheel
Park Transaction
SoCalGas-Gas Acquisition receives a negotiated quantity of natural gas from a customer at a specified time and delivery point and then redelivers gas back to the Customer at the same delivery point on the SoCalGas system at an agreed upon later time.
Example of Parking
- Market assumptions: California border natural gas is in contango from December to the following February.
- Your Gas Acquisition representative determines if the Gas Acquisition has assets available to park natural gas in December for withdrawal the following February.
- You buy December natural gas and deliver it to Gas Acquisition for a negotiated fee.
- Gas Acquisition - SMS delivers the gas back to you the following February.
Loan Transaction
SoCalGas-Gas Acquisition delivers a negotiated quantity of natural gas to a customer at a specified time and delivery point and then receives gas back from the Customer at the same delivery point on the SoCalGas system at an agreed upon later time.
Example of Loaning
- Market assumptions: California border natural gas market is in backwardation from January to April of the current year.
- Your Gas Acquisition - SMS representative determines the Gas Acquisition - Secondary Market Services has assets available to loan natural gas in January for April payback.
- You borrow January natural gas from the Gas Acquisition - SMS for a negotiated fee.
- You deliver the natural gas back in April to the Gas Acquisition - SMS.
Wheel Transaction
SoCalGas-Gas Acquisition receives a negotiated quantity of natural gas from customer at a specified delivery point on the SoCalGas system and then simultaneously delivers the gas to the customer at a different delivery Point on the SoCalGas system.
Example of Wheeling
- A customer has California border natural gas in one location and a market in another location.
- Gas Acquisition - SMS can receive and deliver gas at different points within the SoCalGas system subject to system operations for a negotiated fee.
Secondary Market Services Agreement
To ensure Gas Acquisition - SMS are readily available to meet your needs, sign a Secondary Market Services Agreement. There's no cost or obligation. Individual deals will be verified through confirmations.
Contact Us
For additional information contact:
Reginald Gentry
(213) 670-3533
RGentry@socalgas.com
Stanley Kwan
(213) 465-6903
swkwan1@socalgas.com
Brent Mishler
(657) 933-9429
BMishler@socalgas.com