California denies SoCalGas’ proposal to build $621.3m North-South Pipeline

The California Public Utilities Commission (CPUC) has rejected Southern California Gas' (SoCalGas) proposal to build the $621.3m North-South Pipeline as the firm could not demonstrate a need for the project.

SoCalGas proposed that the pipeline would have consisted of a new natural gas pipeline between the town of Adelanto and the Moreno Pressure Limiting Station.

The project would also have involved rebuilding of the Adelanto Compressor Station, in part, to increase reliability by allowing the Honor Rancho storage field on the northern system to help support deliveries on the southern system.

Furthermore, the company said that the pipeline will deliver more gas from its northern system to its southern one and thus help alleviate potential gas shortages.

CPUC commissioner Mike Florio said: “The basic issue is whether it is in the public interest to construct the North-South Pipeline Project.

“SoCalGas was unable to demonstrate that there is a need for the North-South Project given that it would not bring additional gas into Southern California, but merely provide a means for reallocation of existing supply.”

CPUC said little stored gas is available on the northern system to support deliveries on the southern system due to the Aliso Canyon gas leak that occurred on 23 October 2015.

Gas was released from a well within SoCalGas’ Aliso Canyon's underground storage facility in the Santa Susana Mountains near Porter Ranch, Los Angeles.

The commission determined that without considering the developments at the facility, there are multiple alternatives to the North-South Pipeline that could deliver additional gas supplies to the southern system at lower cost.

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Image: Southern California Gas Company's vast Aliso Canyon facility. Photo: courtesy of Scott L.