Heat Wave Fuels California Natural Gas Price Rally

California's natural gas demand is expected to surge in the coming week due to an ongoing heat wave, according to data from Daily Gas Price Index. The SoCal Citygate premium has reached its widest level in three weeks as a result of this increased demand.

The Pacific power burn forecast is projected at 4.8 Bcf/d, while gas-fired output in the region has jumped by 48% and cooling demand is running four times normal levels.

This heat wave is expected to extend support for natural gas prices in California, which have been rallying due to increased demand.