California sets clear course to close Aliso Canyon Gas Storage Facility

California's utilities regulatory agency on Thursday set out a clear path to potentially close SoCalGas Aliso Canyon's gas storage facility. The regulator prioritized energy reliability and affordability, as the state moves towards cleaner energy.

In a press release, the California Public Utilities Commission said that it has set an annual peak natural gas demand of 4,121,000,000 cubic feet. This is the level at which Southern California will be able to meet its demand without Aliso Canyon.

The CPUC announced that Aliso Canyon will be permanently closed when "the forecasted peak day demand two years in advance decreases to the targeted level."

The regulator stated that the natural gas demand is on a downward trend in Southern California as a result the state's climate goals and policies.

The CPUC also added that the purchase of large amounts of renewable energy will reduce dependence on natural gas-fired plants.

In a press release, Governor Gavin Newsom stated that "Aliso Canyon should be permanently closed without harming families who are working with skyrocketing bills."

U.S. Natural Gas Futures rose about 6% on Thursday to a record high of 23 months due to lower production in recent days, a rise in the amount flowing to LNG export plants, which reached an 11-month-high, and forecasts for colder temperatures in January. (Reporting by Daksh Grover in Bengaluru; Editing by Abinaya Vijayaraghavan)

(source: Reuters)