Natural Gas Data Needs in a Changing Regulatory Environment (1985) / Chapter Skim
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PIPELINES
PIPELINES
Pages 100-123
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From page 100... ...
In ter state Tr ansactions The typical tr ansact ions in the inter state market d i ffer mar kedly from those i n the intrastate market . Mos t inte r s tate gas involve s a sale f r om a producer to a pipel ine , wh ich sells to a local d i str ibut ion company , wh ich sells to a user (Tuss ing and Bar low , 19 7 3 )
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From page 101... ...
Thus , intrastate p ipe l ines enj oy subs tantially greater pr ic ing freedom and entry and ex i t mob i l i ty than inte r s tate pipel ines . Trans i t ion to a Mor e Compe t i t ive Industry I t appear s that the NGPA had s ucceeded by 1983 in r a is ing aver age wellhead pr ices to market-clear ing levels .
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From page 102... ...
e . , inte r s tate pipel ines .
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From page 103... ...
We d i scuss and assess curr ent data act iv i t ies in gas pur chases , i mpor tat ion , tr anspor tation , s tor age , and sales and brokerage . To per form the analys is , the pane l r ev iewed the major EIA and othe r publ icly ava i lable data on th is s egment and evalua ted those data in l ight of both the need for basel ine data and par ticular pol icy issues .
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From page 104... ...
When ther e ar e r e lat ively few pipel ines connected to a produc ing bas in , the potential exists for these pipel ine to exer t undue ma r ket power . When a pipel ine is a f f i l iated w i th a produc ing company , ther e is a concer n that the company w i ll take advantage of that r elat ionsh ip to the detr i men t o f consumer s and other produce r s .
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From page 105... ...
EIA Des igned for FERC pipel ine regulat ion . FERC-1 5 Gas Suppl ies of I n te r F i ve-year projec t ions of volumes taken by state Natu r a l Ga s f ield and seller and 20-year proj ect ions o f Compan ies , EIA del iverab i l i ty .
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From page 106... ...
I t is unclea r how intrastate pipel ines tha t a r e a f f i l iated or owned by a n i n teg r ated producer would repor t (e .
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From page 107... ...
! panies , Annua l lected bu t no t d issemina ted � only the aver a9 e Repor t of Natu r a l Ga s acqu is i t ion costs of each pipel ine a r e Companies , spec i a l disseminated re9ular 1y .
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From page 108... ...
Transpor tat ion I n te r s ta te FBRC-1 1 , Natu r a l Ga s Monthly , The foras prov ide deta i led quan t i ty , loca t ion , FERC-2 , S ta t i s t ic s o f and buye r i n for ma t ion , pr ice s mus t b e FERC-2A I n te r s ta te Natur a l calcula ted by d iv id ing r evenues by volumes . Gas Compan ies, EIA I nd iv idua l tar i f f schedules on f i l e a t FERC prov ide deta iled pr ice and ter a informa t io n bu t a r e d i f f icu l t t o use .
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From page 109... ...
lp! n ies, EIA E IA-1 7 6 Na tu r a l Ga s Annua l , EIA I n te r s ta te agg r egate s a les for r esale volumes by state are prov ided but inte r s ta t e de f in i t ion not cons i s ten t w i th FBRC da ta .
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From page 110... ...
Intr a s ta te EIA- 1 7 6 Natu r a l Gas Annual , EIA Aggregate s ta te-leve l data prov ided fo r resale volumes only . NO data on pipel ine sales d irectly to user s a r e prov ided .
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From page 111... ...
Some pipel ines and producer s have also sought regulatory approval for spec ial mar keting programs that featured spot purchases by p ipel ines and user s . The sh i f t from long-term contracts to spot purchases and the attendant gas-on-gas compe t i t ion r a ises new r egulatory i ssues for PERC .
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From page 112... ...
As we noted above , user s w i ll l ikely become mor e act ive pur chasers of gas , wh ich could place mor e r is k on pipel ines who retain requirements to serve all customer s . Consequently , the major pr iva te sector dec is ions r egard ing gas pur chases ar e wher e to purchase gas , from wh ich bas ins , from wh ich producers J and how to purchase gas , whether d i r ectly from a producer or f r om a pipe l ine , at what pr ice and terms .
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From page 113... ...
3 tc f at $ 3 . 5 4/mcf for all inter state pipel ines .
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From page 114... ...
Wh il e FBRC r equ i res monthly r epor ting from interstate compan ies involved in these prog r ams , the informat ion is not curr ently disseminated by BIA nor was BIA involved in des ign ing the collect ion e f for t . S i nce the spec ial market ing prog r ams are shor t term and exper imental in nature , a l arge e f for t to collect systematic data may not be war ranted .
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From page 115... ...
Recently , voluntary contrac t car r iage and a var iety of spec ial marketing prog r ams have i ncreased the r ole of tr anspor tat ion-only serv ices by p ipel ines , althoug h some par ties have alleged that they have been den ied transpor tation serv ices by pipel ines . These par t ies advocate leg islat ion to r equ i r e mandatory car r iage by pipel ines .
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From page 116... ...
W i th more compe t i t ion throughout the natural gas bus i nes s , pipel ines will increas ingly be concerned w i th keeping operat ing costs down . Wh ile those costs have been a small por tion of the user ' s bill , they could increas ingly become the focus of pipel ine compan ies that are competing successfully for contract carr iage on cer ta in routes .
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From page 117... ...
P r ivate Sector Pipel ines and , to a lesser extent , d istr ibut ion compan ies mus t dec ide how t o inves t in and oper ate s torage fac i l ities t o bes t balanc e system oper at ions and mee t peak day load r equ i r ements . As pipel ines beg in to d isagg regate the serv ices they prov ide , they mus t also dec ide on a pr ice to be charged for s torage .
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From page 118... ...
I t i s d i f f icul t , i f not imposs ible , for the gover nment to evaluate the level of protect ion prov ided by any g iven volumes in s torage because th is level i s dependent on the del iver abi l i ty of gas from par t icular s torage f ields and the phys ical capac i ty to move gas from s tor age to user s . Fur thermor e , p ipel ines can have other ar r angements for meet ing peak demands , includ ing increased takes f rom producer s and spot purchases from other pipel ines .
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From page 119... ...
There are some g aps in th is informat ion , however , ar i s ing from the tr ans it ion to a more compe t i t ive market . I t is not c lear who is buying gas (other than pipel ines )
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From page 120... ...
Intrastate pipel ines or unregulated buyer s ( intr a state , inter state d irect purchases , or unregulated brokers ) may obta i n a compet itive advantage i f E IA publi shes the pr ices pa id by the ir com pe t i tor s .
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From page 121... ...
Bow are p ipe l ines and producer s reta in ing mor e flexibility in transac tions ? • Decoupl ing of pipel ine services : Bow are pipel ines sell ing brokerage , transpor tat ion , and s torage serv ices?
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From page 122... ...
Tu ss ing , Ar lon , and Bar low , Conn ie 1 97 3 An Introduct ion to the Gas Industry With Spec ial Re fer ence to the Proposed Alaskan Highway Gas Pipel ine (A Pr el iminary Repor t to the Alaska S tate Leg islature )
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From page 123... ...
As cheaper and mor e e f fect ive natural gas , t ransmitted long d is tances , replaced manufactured gas , d istr ibut ion compan ies wer e trans formed into the downs tream component of a three-segment indus try , the other two be ing producer s and pipel ines . Mos t distr ibut ion compan ies no longer control the source of the ir supply : nearly a ll of thea are dependen t upon producer s to make the explorat ion investments necessar y to ma inta in an inventory of proven gas r eserves and the development inves tments requ i r ed to ma inta i n rel iable del iverab i l i ty r many ar e dependent upon inter state p ipel ines to negotiate w i th the producers and to prov ide s torag e and tr anspor tat ion .
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