Gas Acquisition - Secondary Market Services
Gas Acquisition - Secondary Markets Services (SMS) exists to optimize the utilization and value of our core assets, particularly storage and flowing natural gas supply. In doing so, it offers customers alternative solutions for today's dynamic natural gas market.
Gas Acquisition - SMS deals are structured to meet your specific volume, term and location requirements. They can accommodate even your last-minute needs, as well as short-term or long-term transactions.
- Ability to execute firm and interruptible transactions
- Access to more than 1 billion cubic feet of flowing natural gas supply per day
- Access to natural gas storage inventory
- Mitigate monthly imbalance positions
- Balance long or short positions
- Arrange delivery of natural gas into other delivery points or systems
Park, Loan and Wheel
Natural gas is held for set period of time and returned at the same location.
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.
- The Gas Acquisition delivers the gas back to you the following February.
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 an 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.
Receipt of natural gas at one location and delivery of natural gas at another location on the SoCalGas system
Example of Wheeling
- A customer has California production 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.