<PAGE>PAGE 1
                                UNITED STATES
                     SECURITIES AND EXCHANGE COMMISSION
                           Washington, D.C. 20549

                                  FORM 10-Q

       [ X ]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
                       SECURITIES EXCHANGE ACT OF 1934


For the quarterly period ended            March 31, 1997
                              --------------------------------------------

Commission file number             1-1402
                      ----------------------------------------------------

                         SOUTHERN CALIFORNIA GAS COMPANY
              ------------------------------------------------------
              (Exact name of registrant as specified in its charter)

                  California                           95-1240705
---------------------------------------------      -------------------
(State or other jurisdiction of incorporation       (I.R.S. Employer
               or organization)                    Identification No.)

             555 West Fifth Street, Los Angeles, California 90013-1011
             ---------------------------------------------------------
                     (Address of principal executive offices)
                                  (Zip Code)

                               (213) 244-1200
             ----------------------------------------------------
             (Registrant's telephone number, including area code)

Indicate  by  check  mark whether the registrant (1) has filed   all  reports
required  to be filed by Section 13 or 15 (d) of the Securities Exchange  Act
of  1934 during the preceding 12 months (or for such shorter period that  the
registrant  was required to file such reports), and (2) has been  subject  to
such filing requirements for the past 90 days.

Yes  X    No
    ---

The  number  of  shares  of  common stock outstanding  on  May  6,  1997  was
91,300,000.

                         PART I - FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS.
<PAGE>PAGE 2
               SOUTHERN CALIFORNIA GAS COMPANY AND SUBSIDIARY
                 CONDENSED STATEMENT OF CONSOLIDATED INCOME
                           (Thousands of Dollars)
                               (Unaudited)

                                                      Three Months Ended
                                                           March 31
                                                       -----------------
                                                         1997      1996
                                                       ------    ------

Operating Revenues                                   $738,405     $619,840
                                                     --------     --------
Operating Expenses:
  Cost of gas distributed                             349,963      249,967
  Operation and maintenance                           170,559      156,773
  Depreciation                                         62,556       60,327
  Income taxes                                         45,567       44,366
  Other taxes and franchise
   payments                                            27,655       29,466
                                                    ---------     --------
     Total                                            656,300      540,899
                                                    ---------     --------
Net Operating Revenue                                  82,105       78,941
                                                    ---------     --------
Other Income and (Deductions):
  Interest income                                         223          318
  Regulatory  interest                                  1,669          552
  Allowance for equity funds use
   during construction                                    785        1,700
  Income taxes on non-operating
  income                                                 (883)         (19)
  Other - net                                          (1,811)      (1,518)
                                                     --------     --------
     Total                                                (17)       1,033
                                                     --------     --------
Interest Charges and (Credits):
  Interest on long-term debt                           20,429       20,551
  Other interest                                        2,245        3,415
  Allowance for borrowed funds
   used during construction                              (429)        (978)
                                                     --------     --------
     Total                                             22,245       22,988
                                                     --------     --------
Net Income                                             59,843       56,986
Dividends on Preferred Stock                            1,776        2,807
                                                     --------     --------
Net Income Applicable to
 Common Stock                                        $ 58,067     $ 54,179
                                                     ========     ========


See Notes to Condensed Consolidated Financial Statements.

<PAGE>PAGE 3

              SOUTHERN CALIFORNIA GAS COMPANY AND SUBSIDIARY
                   CONDENSED CONSOLIDATED BALANCE SHEET
                                   ASSETS
                           (Thousands of Dollars)
                                (Unaudited)

                                                March 31      December 31
                                                 1997             1996
                                             -----------      -----------

Utility Plant                                  $5,964,899      $5,963,047
  Less accumulated depreciation                 2,828,896       2,795,726
                                               ----------      ----------
      Utility plant - net                       3,136,003       3,167,321
                                               ----------      ----------

Current Assets:
  Cash and cash equivalents                        43,514          13,601
  Accounts and notes receivable (less
    allowance for doubtful receivables of
    $18,712 in 1997 and $16,256 in 1996)          343,259         412,934
  Regulatory accounts receivable                  202,314         295,810
  Deferred income taxes                            27,456          22,033
  Gas in storage                                    2,664          27,644
  Materials and supplies                           13,503          13,222
  Prepaid expenses                                 11,781          13,662
  Income Taxes Receivable                                          11,482
                                               ----------      ----------
        Total current assets                      644,491         810,388
                                               ----------      ----------
Regulatory Assets                                 355,326         376,380
                                               ----------      ----------
        Total                                  $4,135,820      $4,354,089
                                               ==========      ==========









See Notes to Condensed Consolidated Financial Statements.









<PAGE>PAGE 4

               SOUTHERN CALIFORNIA GAS COMPANY AND SUBSIDIARY
                    CONDENSED CONSOLIDATED BALANCE SHEET
                        CAPITALIZATION AND LIABILITIES
                           (Thousands of Dollars)
                               (Unaudited)

                                                 March 31        December 31
                                                   1997             1996
                                              ------------       -----------
Capitalization:
  Common equity:
      Common stock                             $  834,889         $  834,889
      Retained earnings                           558,540            555,253
                                               ----------         ----------
        Total common equity                     1,393,429          1,390,142
  Preferred stock                                  96,551             96,551
  Long-term debt                                1,069,894          1,090,170
                                               ----------         ----------
         Total capitalization                   2,559,874          2,576,863
                                               ----------         ----------

Current Liabilities:
  Short-term debt                                  89,966            262,366
  Accounts payable                                404,829            474,137
  Accounts payable-affiliates                      20,415             44,290
  Accrued taxes and franchise payments             43,525             27,943
  Accrued Income taxes payable                     47,608
  Long-term debt due within one year              147,000            147,000
  Accrued interest                                 43,394             40,664
  Other accrued liabilities                        57,784             62,955
                                               ----------         ----------
        Total current liabilities                 854,521          1,059,355
                                               ----------         ----------

Deferred Credits:
  Customer advances for construction               40,751             42,433
  Deferred income taxes                           411,687            404,982
  Deferred investment tax credits                  63,221             63,997
  Other deferred credits                          205,766            206,459
                                               ----------         ----------
        Total deferred credits                    721,425            717,871
                                               ----------         ----------
        Total                                  $4,135,820         $4,354,089
                                               ==========         ==========

See Notes to Condensed Consolidated Financial Statements.




<PAGE>PAGE 5
               SOUTHERN CALIFORNIA GAS COMPANY AND SUBSIDIARY
               CONDENSED STATEMENT OF CONSOLIDATED CASH FLOWS
                           (Thousands of Dollars)
                               (Unaudited)

                                                    Three Months Ended
                                                        March 31
                                               ---------------------------
                                                  1997              1996
                                                 ------            ------
Cash Flows From Operating Activities:
  Net income                                    $ 59,843          $ 56,986
  Adjustments to reconcile net income to
   net cash provided by operating activities:
     Depreciation                                 62,556            60,327
     Deferred income taxes                         5,929             3,795
     Other                                        (3,001)              (61)
  Net change in other working capital
    components                                   184,026           230,567
                                                --------          --------
      Net cash provided by operating
       activities                                309,353           351,614
                                                --------          --------
Cash Flows from Investing Activities:
  Expenditures for utility plant                 (30,612)          (42,066)
  Decrease in other assets                           404             2,679
                                                --------          --------
      Net cash used in investing activities      (30,208)          (39,387)
                                                --------          --------

Cash Flows from Financing Activities:
  Redemption of preferred stock                                    (50,000)
  Decrease in long-term debt                      (20,276)         (19,399)
  Decrease in short-term debt                    (172,400)        (150,000)
  Dividends paid                                  (56,556)         (60,203)
                                                 --------         --------
     Net cash used in financing
      activities                                 (249,232)        (279,602)
                                                 --------         --------

Increase in Cash and Cash Equivalents              29,913           32,625
Cash and Cash Equivalents, January 1               13,601           12,611
                                                 --------         --------
Cash and Cash Equivalents, March 31              $ 43,514         $ 45,236
                                                 ========         ========
Supplemental Disclosure of Cash Flow Information:
  Cash paid (received) during the period:
      Interest (net of amount capitalized)       $ 19,117         $ 11,864
                                                 ========         ========
      Income Taxes                               $ 13,149         $(22,782)
                                                 ========         ========
See Notes to Condensed Consolidated Financial Statements.

<PAGE>PAGE 6

                                      
               SOUTHERN CALIFORNIA GAS COMPANY AND SUBSIDIARY
      NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)


1.   MERGER AGREEMENT WITH ENOVA CORPORATION

On  October  14,  1996  Pacific Enterprises (Parent)  and  Enova  Corporation
(Enova),  the  parent  company  of San Diego Gas  &  Electric,  announced  an
agreement,  which  both  Boards of Directors unanimously  approved,  for  the
combination of the two companies, tax-free, in a strategic merger  of  equals
to  be accounted for as a pooling of interests.  The combination was approved
by  the shareholders of both companies on March 11, 1997.  Shareholder  votes
in  favor  of  the combination totaled 79% of the outstanding shares  of  the
Parent and 76% for Enova (99% and 96% of total votes cast for the Parent  and
Enova,  respectively).   Completion of the  combination  remains  subject  to
approval by regulatory and governmental agencies.

As a result of the combination, the Parent and Enova will become subsidiaries
of   a  new  holding  company  and  their  common  shareholders  will  become
shareholders  of  the  new  holding  company.   Pacific  Enterprises'  common
shareholders  will  receive 1.5038 shares of the new holding  company  common
stock for each of their shares of the Parent's common stock, and Enova common
shareholders will receive one share of the new holding company's common stock
for  each of their shares of Enova common stock.  Preferred stock of  Pacific
Enterprises, Southern California Gas Company (Company) and San  Diego  Gas  &
Electric will remain outstanding.

The new holding company will be incorporated in California and will be exempt
from the Public Utility Holding Company Act as an intrastate holding company.

The  merger  is  subject to approval by certain governmental  and  regulatory
agencies  including  the  California Public Utility  Commission  (CPUC),  the
Federal  Energy  Regulatory  Commission(FERC), the  Securities  and  Exchange
Commission, and the Department of Justice.  Required approvals of the  merger
are  expected  to occur in late 1997.  In the interim, the Parent  and  Enova
have  formed a joint venture to provide integrated energy and energy  related
products and services.

The  Parent  owns  indirect  interests in several small  electric  generation
facilities  which  are  "qualifying  facilities"  under  the  Public  Utility
Regulatory Policies Act.  Qualifying facility status is not available to  any
facilities that are more that 50% owned by an electric utility or an electric
utility holding company.

Upon  the  completion of the proposed business combination, the  new  holding
company  will  become an electric utility holding company.  Consequently,  in
order  to avoid the loss of qualifying facility status, the Parent must cause
its  ownership in these facilities (together with that of all other  electric
utilities  or  electric utility holding companies) to be not  more  than  50%
prior to the completion of the business combination.  The parent is

<PAGE>PAGE 7


considering several alternatives to accomplish this result including the sale
of all or part of these facilities.

2. SUMMARY OF ACCOUNTING POLICIES

The  accompanying  condensed  consolidated  financial  statements  have  been
prepared in accordance with the interim period reporting requirements of Form
10-Q.  Reference is made to the Company's Annual Report on Form 10-K for  the
year ended December 31, 1996 for additional information.

Results  of operations for interim periods are not necessarily indicative  of
results  for the entire year.  In the opinion of management, the accompanying
statements   reflect  all  adjustments  which  are  necessary  for   a   fair
presentation.   These adjustments are of a normal recurring nature.   Certain
changes  in  account  classification have  been  made  in  the  prior  years'
consolidated financial statements to conform to the 1997 financial  statement
presentation.

In  order  to  match revenues and costs for interim reporting  purposes,  the
Company defers revenues to match costs which it expects to incur later in the
year.   This  procedure  may change depending on the provisions  of  a  final
decision on the Company's Performance Based Regulation (PBR) proposal.   (See
"REGULATORY ACTIVITY AFFECTING FUTURE PERFORMANCE")

In  conformity  with generally accepted accounting principles, the  Company's
accounting   policies  reflect  the  financial  effects  of  rate  regulation
authorized by the CPUC.  The Company applies the provisions of the  Statement
of  Financial  Accounting Standards No. 71, "Accounting for  the  Effects  of
Certain  Types of Regulation" (SFAS 71).  This statement requires  cost-based
rate  regulated entities that meet certain criteria to reflect the authorized
recovery  of costs due to regulatory decisions in their financial statements.
The  Company believes that it would continue to meet the criteria of SFAS  71
in  accounting for regulated operations under PBR as proposed by the  Company
or  the  CPUC  (see  "REGULATORY  ACTIVITY  AFFECTING  FUTURE  PERFORMANCE").
However,  the  terms  of PBR ultimately authorized by the  CPUC  may  contain
elements  that could result in the Company not meeting all the  criteria  for
continued application of SFAS 71.

Income  tax  expense recognized in a period is the amount  of  tax  currently
payable  plus  or minus the change in the aggregate deferred tax  assets  and
liabilities.   Deferred  taxes  are recorded  to  recognize  the  future  tax
consequences of events that have been recognized in the financial  statements
or  tax  returns.   For additional information regarding  income  taxes,  see
Footnote  3  of  Notes to Consolidated Financial Statements in the  Company's
1996 Form 10-K filing.

Estimated  liabilities for environmental remediation are  recorded  when  the
amounts  are  probable and estimable.  Amounts authorized to be recovered  in
rates   are   recorded   as  regulatory  assets.   Possible   recoveries   of
environmental remediation liabilities from third parties are not deducted

<PAGE>PAGE 8


from  the  liability shown on the balance sheet.  For additional  information
regarding  commitments  and  contingencies,  see  Footnote  5  of  Notes   to
Consolidated Financial Statements in the Company's 1996 Form 10-K filing.


Item 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF  FINANCIAL CONDITION AND
RESULTS OF OPERATIONS

The  following  discussion should be read in conjunction with  the  Condensed
Consolidated Financial Statements contained in this Quarterly Report on  Form
10-Q  and  Management's  Discussion and Analysis of Financial  Condition  and
Results  of Operations contained in the Company's Annual Report on Form  10-K
for the year ended December 31, 1996.

INFORMATION REGARDING FORWARD-LOOKING COMMENTS

The following discussion includes forward-looking statements with respect  to
matters   inherently  involving  various  risks  and  uncertainties.    These
statements are identified by the words "estimates", "expects", "anticipates",
"plans", "believes" and similar expressions.

The  analyses employed to develop these statements are necessarily based upon
various assumptions involving judgments with respect to the future including,
among  others, national, regional and local economic, competitive conditions,
regulatory  and  business  trends and decisions, technological  developments,
inflation  rates, weather conditions, and other uncertainties, all  of  which
are  difficult  to predict and many of which are beyond the  control  of  the
Southern  California Gas Company (Company).  Accordingly, while  the  Company
believes  that the assumptions upon which the forward-looking statements  are
based,  are reasonable for purposes of making these statements, there can  be
no  assurance  that these assumptions will approximate actual  experience  or
that  the  expectations set forth in the forward-looking  statements  derived
from these  assumptions will be realized.

SUMMARY

The  Company reported net income of $58 million in the first quarter of  1997
compared  to  $54  million in the first quarter of  1996.   The  increase  in
earnings  is  primarily  due to savings resulting from  lower  operating  and
maintenance expenses than the amounts authorized in rates and an increase  in
the  common equity component of the Company's capital structure to  48%  from
47.4%.

The  Company  is  continuing  its  efforts  to  implement  Performance  Based
Ratemaking (PBR) in regulatory proceedings before the CPUC.  Until the PBR is
approved, the Company's rates will remain unchanged from the level in effect
during  1996.   As  a  result of this, we expect to  report  slightly  higher
earnings  for  the period before the PBR is in effect due to achieving  lower
operating costs than what is assumed in rates.  After implementing PBR, we


<PAGE>PAGE 9


expect  increased  earnings volatility resulting from a lower  proposed  base
margin and throughput factors, offset with potential higher earnings over the
long-term.   However,  the Company will continue to  control  its  costs  and
manage its operations as in past years.

On  April  21,  1997, an Administrative Law Judge issued a proposed  Decision
(PD) on the Company's PBR filing.  The PD differs from the Company's original
filing  in  several material respects.  A final decision is expected  in  the
second  quarter of 1997.  (See additional comments under "REGULATORY ACTIVITY
INFLUENCING FUTURE PERFORMANCE.")

An  agreement  to  extend the existing union contract  on  wages,  hours  and
working conditions was ratified by the Company's represented employees.   The
union contract was extended to March 31, 1999 with an automatic extension  to
March 31, 2000 if neither side declares a need to reopen the contract.


RESULTS OF OPERATIONS

Net  income  for  the first quarter of 1997 was $58 million compared  to  $54
million  for  the  same period in 1996.  The increase  is  primarily  due  to
savings  resulting  from lower operating and maintenance  expenses  than  the
amounts authorized in rates and an increase in the common equity component of
The  Company'  capital structure to 48% from 47.4%.  Earnings for  the  first
quarter  of 1996 benefited from a one-time $5.6 million (after-tax) favorable
settlement  from  gas  producers for damages  incurred  to  the  Company  and
customer equipment resulting from impure gas supplies.
























<PAGE>PAGE 10


The  table  below compares the Company's throughput and revenues by  customer
class for the three months ended March 31, 1997 and 1996.

($ in Millions,      Gas Sales         Trans. & Exchg.          Total
vol. in billion
cubic feet)    Throughput  Revenue  Throughput  Revenue  Throughput  Revenue
1997:
Residential         84       $566         1       $  3        85        $569
Comm'l/Ind'l.       25        175        76         65       101         240
Utility Elec.                            21         11        21          11
Wholesale                                38         14        38          14
Exchange                                  0          0         0           0
               -------------------------------------------------------------
Total in Rates     109       $741       136        $93       245         834
Balancing Accts.
  & Other                                                                (96)
                                                                        ----
Total Operating Rev.                                                    $738*
                                                                        ====
1996:
Residential         82       $548         1        $ 3        83        $551
Comm'l/Ind'l.       25        155        68         65        93         220
Utility Elec.                            19         14        19          14
Wholesale                                35         15        35          15
Exchange                                  1                    1
               -------------------------------------------------------------
Total in Rates     107       $703       124        $97       231        $800

Balancing Accts.
  & Other                                                               (180)
                                                                      ------
Total Operating Rev.                                                    $620
                                                                        ====

* Includes affiliate transactions.


Operating revenue increased $118 million for the three months ended March 31,
1997.  The increase in operating revenues for the quarter is primarily due to
higher throughput and higher gas costs compared to the prior year.  Since gas
costs  are  recoverable  in rates (subject to the Gas Incentive  Mechanism  -
discussed below) the increase in gas cost is also reflected as an increase in
revenues.

The  increase in throughput is primarily due to higher deliveries to the  oil
refinery  segment for reformulated gasoline production and higher  deliveries
to the wholesale market due to increased winter demand.  The margin earned on
these  customers  is  substantially  less  than  the  margin  earned  on  gas
transported to utility electric generated (UEG) customers.  In addition,


<PAGE>PAGE 11


throughput  to  UEG  customers  declined  primarily  due  to  the   increased
availability of inexpensive hydro-generated electricity which these customers
purchased  in  lieu of generating natural gas fueled electricity  within  the
Company's service territory.  As a result, net income in the first quarter of
1997  was reduced by $4 million after-tax, due to noncore throughput  falling
below  levels used by the CPUC in establishing total rates. The abundance  of
inexpensive  hydro-generated  electricity  has  continued  into  the   second
quarter.

Cost  of  gas  distributed was $350 million and $250 million  for  the  three
months ended March 31, 1997 and 1996 respectively.  The increase is primarily
due to an increase in the average cost of gas purchased to $2.90 per thousand
cubic feet (MCF) for the first quarter of 1997 compared to $1.59 per MCF  for
the  first quarter of 1996.  Under the current regulatory framework,  changes
in  revenue resulting from changes in volumes in the core market and cost  of
gas do not affect net income.

Operating and maintenance expenses for the three months ended March 31,  1997
were $14 million higher compared to the same period in 1996, primarily due to
a  non-recurring  $9.5  million, pre-tax, settlement  from  a  group  of  gas
producers  for  damages incurred to Company and customer equipment  resulting
from impure gas supplies received during the first quarter 1996.

RECENT CPUC REGULATORY ACTIVITY

Under  the  Gas Cost Incentive Mechanism (GCIM), the Company can recover  all
gas  purchase  costs to the extent that they do not exceed a  tolerance  band
extending to 4 percent above an index benchmark level.  If the Company's cost
of  gas  exceeds  the  tolerance band, the excess costs  are  shared  equally
between customers and shareholders.  All savings from gas purchased below the
benchmark are shared equally between customers and shareholders.

The Company's purchased gas costs were below the specified GCIM benchmark for
the  annual period ended March 1996.  In June 1996 the Company filed a motion
with  the  CPUC  requesting a reward for shareholders under  the  procurement
portion of the incentive mechanism.  The amount will be recognized in  income
when a final CPUC decision (expected in the second quarter) is issued.

The  CPUC  has  approved the use of gas futures for managing risk  associated
with  the  GCIM.  The Company enters into gas futures contracts in  the  open
market on a limited basis to mitigate risk and better manage gas costs.

REGULATORY ACTIVITY INFLUENCING FUTURE PERFORMANCE.

Future  regulatory restructuring, increased competitiveness in  the  industry
and  the  electric  industry restructuring will affect the  Company's  future
performance.   The  Company has filed an application  with  the  CPUC  for  a
"Performance  Based Regulation" (PBR) to replace the general  rate  case  and
certain  other  regulatory proceedings. The Company's proposal,  if  approved
would allow the Company to be more responsive to consumer interests and

<PAGE>PAGE 12


compete  more  effectively in contestable markets.   The  Company's  proposal
would  maintain  cost based rates, but would link financial performance  with
changes  in productivity.  It would also eliminate certain balancing accounts
and  allow revenues to be throughput driven, resulting in increased quarterly
earnings  volatility,  although  no significant  full-year  impact  would  be
expected.  It would also provide the Company with the opportunity to  improve
financial  performance over the long term to the extent it is able to  reduce
expenses,  increase energy deliveries and generate profits from new  products
and services.

On  April  21,  1997  an  Administrative Law Judge (ALJ)  issued  a  Proposed
Decision  (PD) on the Company's PBR application, that differs in a number  of
significant respects from the Company's proposal.  The PD will be reviewed by
the  CPUC which may accept, reject or modify it in rendering a final decision
on  the  application.  SoCalGas will provide comments on the PD to  the  CPUC
commission and a final decision is expected in the second quarter of 1997.

The  following  are the principal differences between the Company's  proposal
and  the  PD.   The  Company's initial application reflected  a  base  margin
reduction of $61.2 million (later was revised to $110 million) while  the  PD
reflects  a net reduction of $182 million.  The Company's proposal calls  for
rate indexing which will ensure that base rates grow at less than the rate of
inflation (inflation minus a productivity factor), while the PD rejects  rate
indexing  and  adopts  revenue or margin indexing  which  would  continue  to
eliminate  the  potential for increased or decreased  earnings  arising  from
higher  or  lower gas throughput to core customers.  The Company proposes  an
annual  1%  productivity factor for decreases in base  rates,  while  the  PD
proposes  a  starting  annual productivity factor  of  1.5%,  which  is  then
incorporated  into  a  complex  formula to  produce  a  substantially  higher
productivity factor.  The Company requests an increase in the customer charge
over  the  five-year  period covered by PRB but reduces  rates  for  gas  and
narrows  the  rate  increase paid when customers exceed the monthly  baseline
amount while the PD defers issues such as residential rate design and pricing
flexibility  to  a future proceeding.  The Company proposes authorization  to
offer  new products and services on a competitive basis at shareholder  risk,
while the PD defers this issue to future proceedings.

The  Company  proposes no earnings sharing while the PD proposes a  mechanism
for  sharing with customers earnings that exceed a specified rate  of  return
but  does not propose any similar downside sharing.  Finally, the PD proposes
that  the Company have the option of implementing PBR retroactive to  January
1, 1997, or on January 1, 1998.

For 1997, the Company is authorized to earn a rate of return on common equity
of  11.6  percent  and a 9.49 percent return on rate base, compared  to  11.6
percent and 9.42 percent in 1996.  The CPUC also authorized a 60 basis  point
increase in SoCalGas' authorized common equity ratio to 48.0 percent in  1997
compared to 47.4 percent in 1996.  The 60 basis point increase in the  common
equity component could potentially add $2 million to earnings in 1997.


<PAGE>PAGE 13


As  discussed  in  the 1996 Form 10-K, existing interstate pipeline  capacity
into  California exceeds current demand.  The Company has exercised its step-
down option on both the El Paso and Transwestern interstate pipeline systems.
the Company has entered into settlements with Transwestern and El Paso, which
have  been  approved  by  the  FERC  and which  define  the  amounts  of  the
unsubscribed capacity costs that are to be recovered from the remaining  firm
reservation charges.  The Company believes that the FERC-approved settlements
with  Transwestern  and  El Paso will not have a significant  impact  on  the
results of operations or on volumes transported or sold.

The CPUC has issued a decision to the Company's 1996 Biennial Cost Allocation
Proceeding filing (BCAP).  The CPUC decision defers recovery of approximately
$20 million in noncore costs, resulting in a noncore rate decrease and leaves
in  place  the existing residential rate structure.  The decision  failed  to
adopt  the  Company's  proposal  to  increase  our  flexibility  in  offering
discounts  to UEG customers to retain load or prevent by-pass.   The  Company
will implement the new rates and core residential monthly gas pricing on June
1, 1997.

As  part of its continuing evaluation of the impact of electric restructuring
on operations, the Company adopted SFAS 121 "Accounting for the Impairment of
Long Lived Assets and Long Lived Assets to be Disposed of" and evaluated  its
impact  on the financial statements.  Although Management believes  that  the
volume  of  gas  transported  may  be  adversely  impacted  by  the  electric
restructuring, it is not anticipated that it would result in an impairment of
assets as defined in SFAS 121 because the expected future cash flows from the
Company's investment in its gas transportation infrastructure is greater than
its carrying amount.

OTHER ACTIVITY

Approximately  5,000 field, clerical and technical employees of  the  Company
are represented by the Utility Workers' Union of America or the International
Chemical  Workers'  Union.  In March 1997, the Company  and  its  represented
employees  reached two new agreements.  One agreement is a one year extension
of the existing contract on wages and working conditions, and the other is an
extension  of the pension and benefits plan and calls for a wage increase  of
3%  effective on August 1, 1997.  Under the contract extension, the agreement
on  wages  and  working conditions expires on March 31, 1999.  The  agreement
could   be  extended  through  March  31,  2000,  if  neither  side   reopens
negotiations.  The  pension  and  benefits  agreement  was  extended  through
December  31, 1999.  Key provisions give the Company flexibility to create  a
multi-skilled workforce through reclassification and training, the  right  to
establish management-employee teams to address proficiency and the  right  to
outsource  noncore  functions such as billings,  all  of  which  enhance  the
Company's  ability  to be more competitive.  Full-time represented  employees
with  satisfactory performance have employment security for the  duration  of
the contract, unless there is a shortage of work.



<PAGE>PAGE 14


For  additional information, see the discussion under the caption "Management
Discussion  and  Analysis - Factors influencing Future  Performance"  in  the
Company's 1996 Form 10-K.


LIQUIDITY

The  decrease in cash provided from operating activities to $309  million  in
the  first quarter ended March 31, 1997 from $352 million in the same  period
1996   is  primarily  due  to  lower  amounts  received  from  undercollected
regulatory balancing accounts in 1997 compared to 1996.

Capital  expenditures were $31 million for the three months  ended  March  31
1997.   This represents a decrease of $11 million compared to the same period
1996.   The  decrease is primarily due to the completion of  a  New  Customer
Information  System which increased the Company's responsiveness to  customer
needs  and reduced operating costs.  Capital expenditures for utility   plant
are  expected  to be $196 million in 1997 and will be financed  primarily  by
internally-generated funds.

In  the  first  quarter  ended March 31, 1997,  $249  million  was  used  for
financing activities.  This was primarily the result of repayment of debt and
payment of dividends.



PART II.  OTHER INFORMATION

Item 6. EXHIBITS AND REPORTS ON FORM 8-K

(b)   There were no reports of Form 8-K filed during the quarter ended  March
31, 1997.




















<PAGE>PAGE 15


SIGNATURE



Pursuant  to  the requirements of the Securities Exchange Act  of  1934,  the
registrant  has  duly caused this report to be signed on its  behalf  by  the
undersigned thereunto duly authorized.


SOUTHERN CALIFORNIA GAS COMPANY
-------------------------------
        (Registrant)

Ralph Todaro
-------------------------------
Ralph Todaro
Vice President and Controller
(Chief Accounting Officer and
duly authorized signatory)
Date:  May 14, 1997