Overview

Only 13.5 percent of the natural gas California used came from in-state production in 2006; the rest was delivered by pipelines from several production areas in the western United States and western Canada. California is at the end of those pipelines, forcing it to compete with other states for supplies. Once the gas arrives in California, it is distributed by the state's three major gas utilities - San Diego Gas & Electric, Southern California Gas Company, and Pacific Gas and Electric - that provide a collective total of 98 percent of the state's natural gas. Long Beach and Palo Alto are the only municipal utilities in California that operate city-owned utility services for natural gas customers.

The largest user of natural gas is electricity generation, using about half of all natural gas in the state. The residential sector uses 22 percent of the natural gas. Of that amount, 88 percent is used by space and water heating.

Natural gas has become an increasingly important source of energy since more and more of the state's power plants rely on the fuel. While California's successful efficiency programs and its reliance on renewable sources of electricity should slow the demand for natural gas relative to the demand in other parts of the nation, competition for supply is increasing. Our reliance on imported gas leaves the state vulnerable to price shocks and supply disruptions.

Importing liquefied natural gas by ship from foreign sources has the potential to furnish new supply, but so far no terminals to receive liquefied natural gas have been approved in California. A newly constructed Mexican facility in Ensenada, Baja California, however, is expected to begin operation by the end of 2008. While 30 to 50 percent of this Sempra-owned plant is contracted for use in Mexico, the remainder should be available to California markets.

Since 1970, the number of households in California has almost doubled from 6.5 million to 12.5 million, pushing total residential natural gas consumption from about 5,500 million therms in 1970 to about 6,700 million therms in 2007. However, the average annual gas consumption per household has dropped more than 36 percent, from 845 therms to 538 therms.   More...

Source: 2007 Integrated Energy Policy Report

Facts & Stats