Interstate Pipelines

Storage has been a significant organizational function of interstate pipeline com­panies for many years. Open access and the elimination of merchant gas sales and services caused pipeline storage areas to effectively become "warehouse" operations. Order 636 allowed the pipelines to retain only such storage as required for operational integrity. Several major pipeline systems in the United States operate without the benefit of storage services for shippers or gas controls. These pipelines sell line packing mostly as a "no-notice" service, and they all attempt to cope with daily operating requirements through a variety of opera­tional flow orders (OFOs) that give them sufficient latitude to require that ship­pers alter whatever behavior caused a problem such as insufficient gas entering the line to support deliveries or insufficient demand to match receipts.

Updated: September 29, 2015 — 12:22 am