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                                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, 1996
                              --------------------------------------------

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  March  31,  1996  was
91,300,000.


                         PART I - FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS.

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               SOUTHERN CALIFORNIA GAS COMPANY AND SUBSIDIARY
                 CONDENSED STATEMENT OF CONSOLIDATED INCOME
                           (Thousands of Dollars)

                                          Three Months Ended
                                               March 31
                                         --------------------
                                           1996        1995
                                         -------     --------
                                              (Unaudited)

Operating Revenues                       $619,840     $604,690
                                         --------     --------
Operating Expenses:
  Cost of gas distributed                 249,967      231,690
  Operation and maintenance               156,773      169,541
  Depreciation                             60,327       58,978
  Income taxes                             44,366       40,935
  Other taxes and franchise
   payments                                29,466       30,274
                                         --------     --------
     Total                                540,899      531,418
                                         --------     --------
Net Operating Revenue                      78,941       73,272
                                         --------     --------
Other Income and (Deductions):
  Interest income                             318        1,597
  Regulatory  interest                        552        1,637
  Allowance for equity funds used
   during construction                      1,700          635
  Income taxes on non-operating
   income                                     (19)         184
  Other - net                              (1,518)      (1,734)
                                         --------      -------
     Total                                  1,033        2,319
                                         --------      -------
Interest Charges and (Credits):
  Interest on long-term debt               20,551       22,256
  Other interest                            3,415        2,653
  Allowance for borrowed funds
   used during construction                  (978)        (367)
                                         --------      -------
     Total                                 22,988       24,542
                                         --------      -------
Net Income                                 56,986       51,049
Dividends on Preferred Stock                2,807        2,928
                                         --------      -------
Net Income Applicable to
 Common Stock                            $ 54,179     $ 48,121
                                         ========     ========

See Notes to Condensed Consolidated Financial Statements.

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

                                               March 31       December 31
                                                 1996             1995
                                             -----------      -----------
                                              (Unaudited)

Utility Plant                                  $5,841,825      $5,807,940
  Less accumulated depreciation                 2,647,625       2,594,713
                                               ----------      ----------
      Utility plant - net                       3,194,200       3,213,227
                                               ----------      ----------

Current Assets:
  Cash and cash equivalents                        45,236          12,611
  Accounts and notes receivable (less
    allowance for doubtful receivables of
    $16,256 in 1996 and $13,456 in 1995)          418,256         398,515
  Regulatory accounts receivable                  101,064         260,573
  Deferred income taxes                            37,087          25,953
  Gas in storage                                    3,508          54,782
  Materials and supplies                           14,995          14,504
  Prepaid expenses                                 18,217          32,593
                                               ----------      ----------
        Total current assets                      638,363         799,531
                                               ----------      ----------
Regulatory Assets                                 441,143         449,521
                                               ----------      ----------
        Total                                  $4,273,706      $4,462,279
                                               ==========      ==========




See Notes to Condensed Consolidated Financial Statements.












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

                                                March 31         December 31
                                                  1996               1995
                                              ------------       -----------
                                               (Unaudited)

Capitalization:
  Common equity:
      Common stock                             $  834,889         $  834,889
      Retained earnings                           608,279            613,445
                                               ----------         ----------
        Total common equity                     1,443,168          1,448,334
  Preferred stock                                 146,551            196,551
  Long-term debt                                1,200,737          1,220,136
                                               ----------         ----------
         Total capitalization                   2,790,456          2,865,021
                                               ----------         ----------

Current Liabilities:
  Short-term debt                                  83,817            233,817
  Accounts payable                                314,349            418,570
  Accounts payable-affiliates                      20,699              9,734
  Accrued taxes and franchise payments            121,976             45,933
  Long-term debt due within one year               95,283             95,283
  Accrued interest                                 53,734             43,480
  Other accrued liabilities                        77,360             50,678
                                               ----------         ----------
        Total current liabilities                 767,218            897,495
                                               ----------         ----------

Deferred Credits:
  Customer advances for construction               46,715             47,029
  Deferred income taxes                           421,404            404,308
  Deferred investment tax credits                  66,236             66,983
  Other deferred credits                          181,677            181,443
                                               ----------         ----------
        Total deferred credits                    716,032            699,763
                                               ----------         ----------
        Total                                  $4,273,706         $4,462,279
                                               ==========         ==========

See Notes to Condensed Consolidated Financial Statements.





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               SOUTHERN CALIFORNIA GAS COMPANY AND SUBSIDIARY
               CONDENSED STATEMENT OF CONSOLIDATED CASH FLOWS
                           (Thousands of Dollars)

                                                   Three Months Ended
                                                        March 31
                                               ---------------------------
                                                  1996              1995
                                                 ------            ------
                                                        (Unaudited)

Cash Flows From Operating Activities:
  Net income                                   $  56,986         $  51,049
  Adjustments to reconcile net income to
   net cash provided by operating activities:
     Depreciation                                 60,327            58,978
     Deferred income taxes                         3,795             7,396
     Other                                           (61)           (1,355)
  Net change in other working capital
    components                                   230,567           278,733
                                               ---------         ---------
      Net cash provided by operating
       activities                                351,614           394,801
                                               ---------         ---------

Cash Flows from Investing Activities:
  Expenditures for utility plant                 (42,066)          (39,765)
  Decrease in other assets                         2,679            13,456
                                               ---------         ---------
      Net cash used in investing activities      (39,387)          (26,309)
                                               ---------         ---------

Cash Flows from Financing Activities:
  Dividends paid                                 (60,203)          (33,970)
  Decrease in long-term debt                     (19,399)          (11,267)
  Decrease in short-term debt                   (150,000)         (194,384)
  Redemption of preferred stock                  (50,000)
                                               ---------         ---------
     Net cash used in financing
      activities                                (279,602)         (239,621)
                                               ---------         ---------

Increase in Cash and Cash Equivalents             32,625           128,871
Cash and Cash Equivalents, January 1              12,611            57,531
                                               ---------         ---------
Cash and Cash Equivalents, March 31            $  45,236         $ 186,402
                                               =========         =========
Supplemental Disclosure of Cash Flow Information:
  Cash paid (refunded) during the period:
      Interest (net of amount capitalized)     $  11,864         $  26,381
                                               =========         =========
      Income Taxes                             $ (22,782)        $  56,243
                                               =========         =========

See Notes to Condensed Consolidated Financial Statements.

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


1. 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 Form 10-K for the year ended  December  31,
1995 for additional information.

Results  of operations for interim periods are not necessarily indicative  of
results  for  the  entire  year.  In order to match revenues  and  costs  for
interim  reporting  purposes, the Southern California Gas  Company  (Company)
defers  revenue related to costs which are expected to be incurred  later  in
the  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 1995 financial statement presentation.


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

This discussion should be read in conjunction with the Condensed Consolidated
Financial  Statements contained in this Form 10-Q and Management's Discussion
and  Analysis  of Financial Condition and Results of Operations contained  in
the Company's 1995 Form 10-K.

Southern  California  Gas  Company  (Company)  is  a  subsidiary  of  Pacific
Enterprises  (Parent).  The Company, a public utility, provides  natural  gas
distribution, transmission and storage in a 23,000-square-mile  service  area
in  southern California and part of central California.  Company markets  are
separated into core customers and noncore customers.  Core customers  consist
of  approximately 4.7 million customers (4.5 million residential and  200,000
small  commercial and industrial customers). The noncore market  consists  of
approximately  1,600  large  customers  which  include  8  utility   electric
generation,  3  wholesale, and the remainder large commercial and  industrial
customers.   The  Company  is  regulated by the California  Public  Utilities
Commission  (CPUC).  It is the responsibility of the CPUC to  determine  that
utilities  operate in the best interest of the customers with the opportunity
to earn a reasonable return on investment.


RESULTS OF OPERATIONS

Net income for the three months ended March 31, 1996 increased by $5.9

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million  compared  to  the  same  period in  1995.   The  Company's  earnings
increased primarily due to lower operating expenses including a $5.6  million
after-tax  settlement from a group of gas producers for damages  incurred  to
Company  and  customer  equipment resulting from  impure  gas  supplies,  and
partially  offset  by  the decrease in authorized rate of  return  on  common
equity to 11.6 percent in 1996 from 12.0 percent in 1995.

Operating  revenues for the three months ended March 31, 1996  increased  $15
million  when  compared to the same period in 1995.  Cost of gas  distributed
for the three months ended March 31, 1996 increased $18 million when compared
to  the same period in 1995.  In 1996, the average unit cost of gas increased
slightly  as  a  result of higher market prices for gas  purchased  for  core
customers resulting in increased revenue from 1995 levels.  Under the current
regulatory  framework,  changes in revenue resulting  from  changes  in  core
volumes  and  cost  of gas delivered to the core market  do  not  affect  net
income.   Noncore volumes and revenues decreased in the UEG market  from  the
levels  in  1995  due  to  the  availability  of  inexpensive  hydrogenerated
electricity.   This has not impacted net income because noncore  revenue  was
not  below  the  levels  used  in accounting for  the  effects  of  the  1993
Comprehensive Settlement.

Operation and maintenance expense for the three months ended March 31,  1996,
decreased  $13  million  when compared to the  same  period  in  1995.    The
decrease  is  primarily due to the $9.5 million pre-tax ($5.6 million  after-
tax) settlement from gas producers (described above).


RECENT CPUC REGULATORY ACTIVITY

Under  the  Gas Cost Incentive Mechanism (GCIM), the Company can recover  all
costs  in  excess of the benchmark to the extent they fall within a tolerance
band  which extends to 4 percent above the benchmark.  If the Company's  cost
of  gas exceeds the tolerance level, then 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.   For  the
second  year  of  the program ended March 31, 1996, gas purchase  costs  were
below the benchmark.

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


FACTORS  INFLUENCING FUTURE PERFORMANCE.  Under current ratemaking  policies,
future  Company net income and cash flow will be determined primarily by  the
allowed  rate  of  return on common equity, changes to  authorized  ratebase,
noncore  market pricing and the variance in gas volumes delivered to  noncore
customers  versus  CPUC-adopted   forecast  deliveries  and  the  ability  of
management  to  control  expenses  and  investment  in line with the amounts

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authorized by the CPUC to be collected in rates.

Future  regulatory restructuring, increased competitiveness in  the  industry
(including the continuing threat of customers bypassing the Company's  system
and  obtaining service directly from interstate pipelines) and  the  electric
industry  restructuring could also affect the Company's  future  performance.
The Company has filed a "Performance Based Regulation" (PBR) application with
the  CPUC  to  replace  the  general ratecase and  certain  other  regulatory
proceedings.   This new approach would maintain cost based rates,  but  would
link  financial performance with changes in productivity.  If  approved,  PBR
would be implemented some time after January 1, 1997.

In  1995,  the  CPUC  issued  a decision to restructure  California  electric
utility  regulation.   While  there  is no immediate  effect  on  operations,
future  volumes  of  natural  gas transported by SoCalGas  for  the  electric
utilities  could  be  adversely  affected by  increased  use  of  electricity
generated by out-of-state producers.

The  Company's  earnings for 1996 will be affected by  the  decrease  in  the
authorized  rate of return on common equity, reflecting the overall  decrease
in  cost  of capital.  For 1996, the Company is authorized to earn a rate  of
return on ratebase of 9.42 percent and a rate of return on common equity of
11.60  percent  compared to 9.67 percent and 12.00 percent, respectively,  in
1995.   A  change in return on equity of 1 percent (100 basis points) impacts
net  income  by  approximately $13 million.  The CPUC has also authorized  an
increase in the equity component of the Company's capital structure  to  47.4
percent  in  1996 from 47.0 percent in 1995.  The 40 basis point increase  in
the equity component should add between $1 million to $2 million to earnings.
Rate base is expected to decline slightly from the level in 1995.

The Company's earnings for 1996 will continue to be favorably impacted by the
completion of a realignment of the Company into two business units  effective
July  1995.  Improvements in earnings that would otherwise result from  these
cost  savings  will  be  partially  offset  by  the  3  percent  productivity
adjustment for 1996 authorized by the CPUC.

As  discussed  in  the 1995 Form 10-K, existing interstate pipeline  capacity
into  California exceeds current demand by over 1 billion cubic feet per day.
However,  the  Federal  Energy Regulatory Commission (FERC)  has  approved  a
settlement  with Transwestern which calls for firm customers,  including  the
Company, to subsidize unsubscribed pipeline costs for a five-year period with
Transwestern assuming full responsibility after that time.  A settlement  was
also  reached  with El Paso, in which customers, including the Company,  will
pay for a portion of the unused capacity.  The  customers  may  also  receive
credits from El Paso for unused capacity sold.  The settlement is for a  ten-
year period and is awaiting approval by the FERC.

Most  field,  clerical and technical employees of the Company are represented
by the Utility Workers' Union of America or the International Chemical


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Workers'  Union.   Agreements  covering these approximately  5,200  employees
relating  to benefits expired in 1995 and an agreement covering wages,  hours
and  working conditions expired on March 31, 1996.  Negotiations  related  to
new contracts are ongoing.

For  additional information, see the discussion under the caption "Management
Discussion  and  Analysis - Factors Influencing Future  Performance"  in  the
Company's 1995 Form 10-K.


CAPITAL  EXPENDITURES.  For the three months ended March 31, 1996  and  1995,
capital  expenditures  were  $42  and  $40  million,  respectively.   Capital
expenditures for utility plant are expected to be $225 million  in  1996  and
will be financed primarily by internally-generated funds.


LIQUIDITY

Regulatory accounts receivable decreased $160 million reflecting the recovery
through  rates  of amounts undercollected in prior years.   As  a  result  of
earnings  and collections or regulatory accounts receivable, the  cash  flows
generated  were  available  for additional cash requirements,  primarily  the
payment  of  dividends  to  the Parent, repayment  of  commercial  paper  and
repurchase of preferred stock.

During  the  first  quarter, the Company redeemed $50  million  of  Series  A
Flexible  Auction preferred stock.  The Company also redeemed  the  remaining
$50 million of Flexible Auction preferred stock (Series C) in April 1996.



                        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, 1996.














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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)


/s/ Ralph Todaro
- -------------------------------
Ralph Todaro
Vice President and Controller
(Chief Accounting Officer and
duly authorized signatory)


Date:  May 7, 1996

 

UT THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONDENSED STATEMENT OF CONSOLIDATED INCOME, BALANCE SHEET AND CASH FLOWS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 0000092108 SOUTHERN CALIFORNIA GAS COMPANY 1,000 3-MOS DEC-31-1995 MAR-31-1996 PER-BOOK 3,194,200 0 638,363 441,143 0 4,273,706 834,889 0 608,279 1,443,168 0 146,551 1,200,737 83,817 0 0 95,283 0 0 0 1,304,150 4,273,706 619,840 44,366 496,533 540,899 78,941 1,033 79,974 22,988 56,986 2,807 54,179 0 0 351,614 0 0