The Interstate Natural Gas Association has recommended steps to bolster integration of the U.S. gas pipeline grid.
An Ingaa task force prepared the steps after local distribution companies (LDCs) raised concerns in late 1993 about conflicting terms and conditions for transportation between interconnected pipelines. Pipelines, producers, LDCS, marketers, and end users participated in the study.
Goals of the project were to:
- Give shippers greater assurance that gas received for them at one pipeline will be available for timely and cost effective delivery by another pipeline under normal operations.
- Provide more knowledge to shippers about what is happening during emergencies.
BALANCING AGREEMENTS
The task force recommended that interstate pipelines develop, as soon as practical, operational balancing agreements (OBAs) at interconnect points where operationally and financially feasible.
OBAs are agreements between two pipelines to resolve day to day variances in gas flow. The study said they have the potential to resolve many kinds of imbalance that occur because of operational differences. OBAs also can help coordinate differences in pipeline tariff provisions.
During emergencies, shippers need better information about what actions pipelines will take affecting gas deliveries.
Ingaa said, "To assist shippers, pipelines should notify affected parties during emergencies, via the electronic bulletin board, of changes related to scheduled quantities, allocation methodology, operating conditions, and any emergency procedures."
The nomination and confirmation process should be as close to a daily operation as possible.
Pipelines agreed to continue their current efforts to move first of month nominations closer to the end of the month. To the extent possible, there should be more flexibility on intraday nominations. Pipelines also should allow shippers to nominate makeup volumes to correct imbalances.
Ingaa said procedures should be developed to allow the pipeline or shipper to efficiently handle a complex process such as submitting confirmation of a nomination.
INNOVATIONS
The task force came up with innovations such as developing a standard confirmation process, allowing shippers to submit standing nominations and allowing in line transfers and pooling for gas shipments. The group also recommended that the pipeline permit shippers to submit a ranking of priorities for gas shipments with the nomination.
The report said pipelines should eliminate unneeded information from data required for a nomination, make nomination procedures and terms more consistent, and use electronic data interchange for nominations, confirmations, and scheduling.
To improve the mechanics of pipelines' current capacity release programs, rules for bidding on capacity release proposals should be as consistent as possible between pipelines. Price information should be clear.
The task force also said gas quality does not appear to be causing problems or inefficiency in moving gas through the interstate grid. It found no reason to change pipeline gas quality tariffs.
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