Press Release(s)


California Energy Commission's Assessment of State's Natural Gas Supplies: Absent new supplies, prices will increase significantly


 Aug. 21, 2007 


Californians for
Clean Affordable Safe Energy
Sacramento -- Californians for Clean, Affordable, Safe Energy (Cal-CASE) today applauded the California Energy Commission for its comprehensive assessment of the state's natural gas supplies.

"This report underscores what Cal-CASE members already know, California must immediately address the growing competition for natural gas supplies and the rising prices that directly impact our state's economy," said Jack M. Stewart, president of the California Manufacturers & Technology Association.

In the 2007 Revised Natural Gas Market Assessment, absent new supplies, the CEC forecasts a price increase of nearly $2 per million cubic feet (MMcf) in the next decade. This translates to $4 to $8 billion of increased costs per year to consumers and business in California.

Stewart noted that it is critically important for California to identify new sources of natural gas, including liquefied natural gas. Located on the far end of the nation's pipeline system, California imports 87 percent of its natural gas. As national gas consumption grows, the state continues to find itself lower on the priority list while paying 30 percent more for natural gas than consumers in other states.This growing supply-demand imbalance has pushed California natural gas prices steadily upward, with future demand projected to increase prices still further.

With more than 40 percent of the state’s electricity generating capacity being fueled by natural gas, Cal-CASE members are urging
California policy makers and opinion leaders to identify and build the natural gas infrastructure that allows our economy to grow and to meet
the peak demands of a summer heat wave. The report states that California natural gas demand growth for the electricity generation
sector is growing at 2.4 percent.

Cal-CASE is a coalition of organizations, businesses and associations dedicated to increasing natural gas imports into California. To meet the growing demand for clean-burning natural gas, the coalition advocates for the approval of facilities to allow for the importation of LNG.

The Natural Gas Assessment Update is available at the Energy Commissions web site: http://www.energy.ca.gov/reports/.

For more information on Cal-CASE and a listing of Cal-CASE members log on to http://www.casefornaturalgas.com.

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