Southern California Gas Co. has proposed a broad menu of unbundled natural gas storage services.
SoCalGas, in an application to the California Public Utilities Commission, is offering the new services as a replacement for present programs involving customer stored gas (G-STOR) and gas stored for electric utility customers for use on smoggy days (G-STAQ).
Currently, transportation customers bid for allotted space in the company's four underground storage sites. Injection and withdrawal are on a best efforts basis, with limits on when gas can be injected or withdrawal.
During the 1992-93 storage season that began Apr. 1, customers have been allocated 11.8 bcf of capacity out of a total of 112.7 bcf sought. Under the new program, to start in April 1993, about 24 bcf of storage capacity would be available year round and much more during certain months.
SERVICES OUTLINES
Under the new storage program, SoCalGas customers will be able to choose a mix of inventory, injection, and withdrawal services at various levels of reliability. All customers will pay for storage on an equal cents per unit of service basis.
Options will include price breaks for injection or withdrawal during off peak months of December-February for injection and April-October for withdrawal. Annual and monthly service will be available on a firm basis for some services and as available and/or month to month for others.
In addition, SoCalGas will offer an optional guarantee that provides a service interruption credit if the company doesn't provide a specified withdrawal service, which it thinks is a first for a gas utility.
SoCalGas will expand its facilities by drilling more injection/withdrawal wells and adding compression to accommodate customers' firm service requirements if they are willing to make long term commitments,
An open season for submitting bids under the new program is under way, with a deadline of Apr. 27 except for cogenerators, whose bids are due May 5. SoCalGas has asked CPUC to let current G-STOR customers roll over gas in inventory into the 1993 program, if they request it.
Copyright 1992 Oil & Gas Journal. All Rights Reserved.
