[The development of market centers for gas transactions] The center of attention
Journal Article
·
· American Gas; (United States)
OSTI ID:6626455
When Federal Energy Regulatory Commission (FERC) Order 636 placed new competitive demands on the buyers, sellers and traders of natural gas, the industry realized it needed to find new faster ways of making transactions. It has, and they are called hubs. With Order 636 and the advent of greater open-market trading, new hubs--so-called market centers--began sprouting throughout the nation's market and end-use regions, as well as in the supply regions. Local distribution companies (LDCs) began to see a market for selling such services as wheeling and balancing--often performed as part of a pipeline's tariff in the capacity-rich producing regions--to customers in end-use areas, where capacity is at more of a premium. Developing a marketing hub could also be considered a defensive move: Despite today's competitive market, LDCs must still serve their ratepayers at a reasonable cost, and a successful market hub can help keep rates low. The paper discusses the development of hubs in various regions of the US, the types of services being offered, and the start-up problems that they are overcoming.
- OSTI ID:
- 6626455
- Journal Information:
- American Gas; (United States), Journal Name: American Gas; (United States) Vol. 76:6; ISSN AMGLEH; ISSN 1043-0652
- Country of Publication:
- United States
- Language:
- English
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