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One of the benefit you get is that you don't lose ~7% from transmission/distribution. The other is that it burns cleaner than coal (but isn't as clean as Nuclear, or renewable as solar/wind/blah)

Beyond that, the cost comes down to availability. There are parts of the world where every single house has a natural gas line for heating (water and air). I've heard that in Japan, small/clean/quiet (relatively) generators are installed in some apartments and provide electricity.

This article has some information on natural gas usage in California. It seems like most of it come from out of state (or country): http://www.cpuc.ca.gov/puc/energy/gas/natgasandca.htm




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