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U.S. Department of Energy
Office of Scientific and Technical Information

U. S. gas pipelines preparing for life under FERC order 636

Journal Article · · Oil and Gas Journal; (United States)
OSTI ID:7117757

This paper reports that interstate gas pipelines in the U.S. are facing dramatically increased administrative complexity if the Federal Energy Regulatory Commission implements Order 636 without major changes. Complexity could increase because pipelines would have to track the status and compile the effects in near-real time of gas moving in and out of interstate systems under thousands of contracts between producers, aggregators, marketers, and end users. Generally, Order 636 would allow all participants in the U.S. gas industry the right to buy, sell, or trade and transport gas to any other participant. The more interstate gas sales, swaps, or resales, the more transactions pipelines would have to follow. Because each shipment of gas would be another entity's property, pipelines would have to assure that contractual volumes reach intended customers at intended delivery points. Because of that role, pipelines are sure to face new operational challenges. Order 636 also would require gas customers to acquire their own gas supplies and arrange deliveries. To track transactions under Order 636, help hundreds - possibly thousands - of shippers balance receipts and deliveries, and provide related transportation services, pipelines would have to adopt new operating strategies and continue upgrading systems equipment and instrumentation.

OSTI ID:
7117757
Journal Information:
Oil and Gas Journal; (United States), Journal Name: Oil and Gas Journal; (United States) Vol. 90:27; ISSN OIGJA; ISSN 0030-1388
Country of Publication:
United States
Language:
English