California Cities Buy Into Texas Gas Field

The Southern California Public Power Authority has purchased a share of a natural gas field on the Barnett Shale in Texas as a way to secure fuel for natural gas-fired power plants, the authority said on Thursday.

Most of the fuel will be used to run the 300-megawatt SCPPA Magnolia Power plant in Burbank. The city of Burbank operates the plant that on most days runs as a baseload plant producing between 120 and 242 megawatts. On high-demand summer days, it can produce up to 310 megawatts output.

Devon Energy will operate the drills in the Newark East Field of the Barnett Shale in Texas and is expected to yield 67 billion cubic feet of equivalent of proven reserves.

SCPPA represents southern California cities Anaheim, Burbank, Pasadena and Colton and the Turlock Irrigation District.

Southern Calif. cities buy share in natgas field [Reuters]