gas quality and interchangeability issues
DESCRIPTION
Gas Quality and Interchangeability Issues. From Gulf South Pipeline’s Perspective by Mike McMahon - Sr. Vice President and General Counsel. GULF SOUTH PIPELINE. Legend. Interstate Receipt Points. Intrastate Receipt Points. Interstate Delivery Points. Intrastate Delivery Points. - PowerPoint PPT PresentationTRANSCRIPT
Gas Quality and Interchangeability
Issues
From Gulf South Pipeline’s Perspective
by Mike McMahon - Sr. Vice President and General Counsel
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GULF SOUTH PIPELINE
Interstate Receipt Points
Legend
Intrastate Receipt Points
Interstate Delivery Points
Intrastate Delivery Points
Major Processing Plants
Interstate/Intrastate Pipelines
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GAS QUALITY ISSUES
In the last five years, Gulf South has received a limited number of quality based customer complaints
Complaints are typically related to specific operational upsets
Hydrocarbon dew point or liquid fallout has not been an issue
Average winter ambient temperature 55° F (New Orleans 5-year average)
Over the last five years, Gulf South has only been notified twice of quality concerns by other interstate pipelines (CO2, hydrocarbon dew point). Both of these notices were last fall and the gas being delivered by Gulf South was within its tariff specifications
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Access to wellhead supplies
Increased gas costs for on-system customers
On Gulf South, LDCs are currently buying gas at small individual receipt points that are not necessarily located behind a processing plant
A change in policy will make Gulf Coast intrastate pipelines more attractive especially to:
Small producers Production that is not located behind a processing plant Marginal wells
Will tend to favor the production area facilities of the incumbent interstate pipeline
COMPETITTIVE EFFECTS OF FERC’S GAS QUALITY POLICY
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GULF SOUTH PIPELINE’S PROPOSAL
A safe harbor should be created for interstate pipelines that deliver gas in the production area to other interstates provided that the gas being delivered meets the delivering pipeline’s tariff specifications.
This proposal will:
Facilitate the movement of gas between interstate pipelines
Continue to provide safe pipeline operations
Maintain a level competitive playing field between all pipelines
Continue to provide customers access to lower cost wellhead gas supplies