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Just in Time: EDI for Gas Nominations

Fortnightly Magazine - February 1 1996

missionaries of integration and cooperation. t

Greg Lander is chairman and president of The National Registry of Capacity Rights, Inc., a not-for-profit corporation that gathers and stores capacity rights information for all major interstate natural gas pipelines. He is also president of TransCapacity Ltd. Partnership, the data-service agent of the Registry. TransCapacity offers a commercial, automated system to access comprehensive databases that contain natural gas pipeline capacity, award, bid, offer, and tariff information.

Pipeline Decontracting The Shipper's View

Over the next three to five years, 60 to 70 percent of all gas pipeline capacity will come up for grabs. Contracts of 10 to 20 years' duration are expiring.

As shippers ponder strategy, they will begin to ask questions. For example: "Should I be comfortable knowing that the value of my long-term investment in capacity will fluctuate according to how well the pipeline maintains its EBB??

Any pipeline that dreams of selling long-term capacity as it has in the past must ask itself: "How easy is it to nominate, confirm, schedule, allocate, and bill on my system? Will a hospital, power plant, or CNG-vehicle fueling station take my firm capacity willingly and hold it a few years? Or will that user be content simply to take a slice every summer, for 10 years?"

Fuel vs. Capacity Let's Get Logical

Time and time again, we find ourselves explaining to the green-eyeshade people why 115 should equal 108, or why 115 yesterday equals 114 today, and how all these nominated quantities are balanced.

Why not nominate compressor fuel separately from pipeline capacity? Why not have 108 in, 108 out, plus 7 fuel in and 7 fuel ourt?

Maybe it's all just too logical, but it sure would make it easier to keep track of nominations, which, after all, is what GISB, EBBs, and EDI are all about.

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