Industry groups have agreed on electronic data interchange (EDI) standards for U.S. natural gas nominations and confirmations.
The Natural Gas Supply Association, Interstate Natural Gas Association of America, American Gas Association, and Independent Petroleum Association of America are recommending the Federal Energy Regulatory Commission require use of the standards.
They said the standards will make it easier to buy and sell gas on computer bulletin boards, reduce costs associated with purchasing gas and planning for its movement, and increase the speed and accuracy of the gas industry's business transactions.
Some gas marketplace participants already use EDI as the basis for many data telecommunication standards. The associations submitted a list of more than 50 larger companies that will begin pilot programs using the standards by June 1.
The agreement sets up a schedule for industry-wide implementation of EDI nomination and confirmation transactions and includes development and implementation of further operational standards yet to be determined.
Industry's efforts to agree on electronic data standards got their impetus from FERC Order 636, implemented last year. FERC requires all companies to be operating electronic bulletin boards by June 1. They must be using the same common codes by Nov. 1.
Another four-association working group agreed to use the Dun & Bradstreet "DUNS" company code as the universal code for EDI transactions sets, allowing parties to identify a gas market participant.
Nick Bush, NGSA president, said, "A significant barrier to the growth of the natural gas marketplace has been the difficulty of managing the transportation of discrete packages of gas over multiple pipeline systems.
"Market complexities have kept some potential participants out of the market and forced many smaller producers and customers to buy and sell through larger intermediaries.
"The gradual introduction of EDI standards will allow smaller producers to market their gas directly, thus increasing the industry's competitiveness. The step also aids smaller marketers, who are often significant in identifying and developing niche markets-groups not well served by larger merchants. The aggregate of these niche customers could noticeably increase gas demand."
