Developing an independent storage area after order 636

✍ Scribed by Broxson, J. Robert

• Book ID: 102218454
• Publisher: John Wiley and Sons
• Year: 2008
• Weight: 247 KB
• Volume: 9
• Category: Article
• ISSN: 0743-5665
• DOI: 10.1002/gas.3410090204

✦ Synopsis

Order 636 goes beyond what many industry participants ever dreamed could happen in the natural gas industry. This order will allow all parties to compete on an equal regulatory footing, giving any entity the ability to provide the same services, or at least a large number of them, as the pipelines themselves offer. Marketing companies, producers, and other suppliers of natural gas must be able to provide services traditionally offered by the pipelines or they will not be able to survive in a marketplace that is requiring suppliers to sell gas on a long-term basis with the same assurances offered by the traditional pipeline supplier. Having the capability to provide these services, such as no-notice service, pipeline balancing, and backup supply alternatives are all factors being evaluated by the customer base when selecting a long-term supplier. While the LDC and end user like the idea of negotiating directly with their supplier, they still want to have the assurance that the supply will be there on the coldest day of the year.