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California has long been one of the oil and gas industry’s largest consumers, but also home to some of its most stubborn opponents. That trend is expected to continue as the state explores ways to limit the use of natural gas while maintaining its current level of power generation.
This dichotomy is a result of restrictions the state put in place following a large gas leak at Sempra Energy’s Aliso Canyon storage facility in February. These restrictions include limiting the amount of gas that is used by power plants and refiners.
These limitations are likely to result in blackouts throughout the Los Angeles region during the winter heating season, according to a report from the California Public Utilities Commission, California Energy Commission, the California Independent System Operator and the Los Angeles Department of Water and Power.
As such, the report advised that the state should seek alternatives for gas during peak days, including importing LNG. Sempra expressed interest in delivering up to 200 million cubic feet per day of LNG from its Costa Azul, Mexico, terminal to San Diego Gas & Electric Co.
To lessen the possibility of blackouts, the California Independent System Operator recommended instituting a ceiling on the amount of gas that can be burned during the coldest days of the year.
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