October Heat Wave Fuels Surge in California Natural Gas Demand

California natural gas demand is poised to jump as an October heat wave settles over the state, extending support for a SoCal Citygate premium that has swelled to its widest in three weeks.

The Pacific power burn forecast stands at around 4.8 billion cubic feet per day (Bcf/d), while California gas-fired output has jumped by 48%. Cooling demand is also running four times normal levels.

This surge in demand comes as an October heat wave settles over the state, with the SoCal Citygate premium having widened to its largest margin in three weeks. The increased power burn and cooling demand are putting upward pressure on natural gas prices in California.