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Order 636 to increase value and utilization of storage

✍ Scribed by Beckman, Kenneth L. ;Marney, Gordon L. ;Mowrey, Earle H.

Publisher: John Wiley and Sons
Year: 2008
Weight: 326 KB
Volume: 9
Category: Article
ISSN: 0743-5665
DOI: 10.1002/gas.3410090104

No coin nor oath required. For personal study only.

✦ Synopsis

As a part of the gas world after Order 636, development of market hubs related to storage and major pipeline interconnections will prove essential for suppliers and consumers aggregating supply and balancing transportation volumes. Additionally, Order 636 comes after five years of significant oversupply and mild winters, such that market dynamics are strongly skewed favoring demand. Significant pipeline capacity expansion and new construction has created a national city gate, effectively linking supply areas to multiple markets. The structural changes following Or- der 636 provide suppliers an opportunity for marketing value-added services (gas supply or transportation) previously bundled in traditional CD sales associated withowned or leased storage services.

Flexibility as to storage withdrawals appears to be substantially reduced, essentially forcing daily balancing into the producing areas.

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