Direct gas purchases by gas distribution companies: Supply reliability and cost implications

Book · Sun Jan 01 04:00:00 EST 1989

OSTI ID:5917046

Duann, D J; Burns, R E; Nagler, P A

This study analyzes the reliability and cost implications of direct gas purchases by local distribution companies (LDCs). A direct purchase is a gas procurement arrangement entered into by an LDC and any entity other than an interstate pipeline. A direct purchase can take may forms including purchases in the gas spot market, the signing of long-term contracts with wellhead producers, and the use of gas marketers to secure gas supplies and transportation services. This study concludes that the most important aspects of the growing use of direct gas purchases by LDCs are the inducement of speedy market responses in adding gas production and transportation capacity and the increases flexibility in LDCs' supply portfolios.

• OSTI ID: 5917046
• Country of Publication: United States
• Language: English

Related Subjects

03 NATURAL GAS
030600* -- Natural Gas-- Economic
Industrial
& Business Aspects
032000 -- Natural Gas-- Transport
Handling
& Storage
COMPETITION
COST BENEFIT ANALYSIS
ENERGY SOURCES
ENERGY SYSTEMS
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
INDUSTRY
MARKETERS
MARKETING RESEARCH
NATURAL GAS
NATURAL GAS DISTRIBUTION SYSTEMS
NATURAL GAS INDUSTRY
RELIABILITY
SUPPLY AND DEMAND
TRANSPORT