Southern California natural gas market’s unusual discount status continues

Natural gas cash prices in Southern California have been below Henry Hub for much of August, and the forwards market is pricing in a rare basis discount continuing through October amid strong storage inventories and gas production in the Western US. The SoCal Gas city-gate cash price has been below Henry Hub throughout Aug. 10-28, averaging a 28 cents/MMBtu discount…Natural gas cash prices in Southern California have been below Henry Hub for much of August, and the forwards market is pricing in a rare basis discount continuing through October amid strong storage inventories and gas production in the Western US. The SoCal Gas city-gate cash price has been below Henry Hub throughout Aug. 10-28, averaging a 28 cents/MMBtu discount…Read More