๐”– Bobbio Scriptorium
โœฆ   LIBER   โœฆ

New features in long-term contracts from order 636

โœ Scribed by Herbert, John C.

Publisher
John Wiley and Sons
Year
2008
Weight
674 KB
Volume
9
Category
Article
ISSN
0743-5665

No coin nor oath required. For personal study only.

โœฆ Synopsis

as is going more long-term. For ex-G ample, the goal of Natural Gas Clearinghouse, the author's company, is to sell 70 percent to 80 percent of its gas under long-term sales agreements. Currently at NGC, the mix between term and spot volumes is roughly fifty-fifty. By contrast, as recently as 1989 spot volumes accounted for more than 80 percent of NGC's sales. Presumably other gas merchants are experiencing a similar transformation. This shift in market portfolio signals a fundamental restructuring of the industry. Order 636, although not the only agent of change, is driving market behavior and directly affecting the term deals being struck in the new marketplace.

. . . the Order's primary influence lies in the fact that unbundling has cut away the safety net inherent in traditional, bundled, and city-gate service, based on the interstate pipelines' obligation to serve.

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