Energy Information Administration

RECENT PRESENTATIONS by the OFFICE of OIL and GAS, NATURAL GAS DIVISION

How Big is the Decontracting/Turnback Problem?(June 17-18, 1997) Gas Pipeline Capacity 97 Conference
Houston, Texas
AUTHOR: Barbara Mariner-Volpe


EIA presents a recent analysis of the pipeline transportation market, the trading of capacity rights and the potential for the reduction or turnback of contracted capacity to the pipeline companies.

The presentation, titled "How Big is the Decontracting/Turnback Problem?" summarizes recent trends in the trading of pipeline capacity on the secondary market and the contracting for firm transportation services. The size and continued growth of the secondary market indicates that there was unused firm capacity in 1996. Pipelines appear to have successfully remarketed capacity as shippers continue to enter into long-term contracts. Total contracted capacity levels have increased between April 1996 and January 1997 and newly signed contracts are shorter in length and for less capacity than older contracts. Nevertheless significant opportunities to turnback capacity to the pipelines exist in the mid-term as more then 50 percent of transportation contracts will expire by 2002. Although shippers are, in the short-term, committing to firm transportation services, the potential exists for a significant amount of decontracted or turned-back capacity in the future.


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File Last Modified: July 2, 1997

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