Intrastate Pipelines

Intrastate pipelines have emerged as the most aggressive targets in the pipe­line asset resale market. The value of storage for intrastate pipelines, whether procured as an equity investment or as a service lease, is essentially identical to the values set by large suppliers and aggregators. Value is defined by the contribution that the storage service brings to the gas sales function. This includes the value available to suppliers from swing supply sales, emergency back-up sales, balancing, no-notice service sales, and incidental income from arbitrage and peaking sales.