NEWS Capacity turnbacks loom as threat to California interstate gas pipelines

!-- Pipeline compressor station at Flagstaff, Ariz., is operated by Transwestern Pipeline Co., an affiliate of Enron Corp. Transwestern is one of several U.S. interstate gas pipelines faced with dedicated capacity being turned back by customers as contracts expire in California, where interstate capacity is overbuilt. Photo courtesy of Enron. -- Capacity turnback is a major problem on the horizon for California's interstate gas pipelines. The result of interstate capacity to the state overbuilt in the 1980s, capacity turnback involves customers phasing down capacity rights once booked under long term contracts with pipelines. The problem is growing and threatening the fina...

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