Wednesday, September 01, 2010

Pipelines, utilities, storage facilities and other systems operating within state boundaries are required to post natural gas flow and capacity data

EVERGREEN, CO (September 1, 2010) – On October 1, 2010, the Federal Energy Regulatory Commission (FERC) is scheduled to implement Order 720, requiring many intrastate pipelines, storage operators, local distribution companies and utilities to post natural gas flow and capacity data at the most significant points within those systems. According to analysts at BENTEK Energy, the addition of intrastate information will provide an unprecedented and crucial level of visibility into natural gas market supply and demand dynamics across North America.

“Interstate pipelines have posted natural gas flow and capacity data for many years,” noted E. Russell (Rusty) Braziel, Managing Director of BENTEK Energy. “Although this data has provided a highly accurate depiction of the flow of natural gas across North America, without intrastate information, the whole picture of gas movement has remained incomplete. Now that we’ll have the missing puzzle piece, our industry will see a much more comprehensive view of the natural gas market.”

Additional rules of Order 720 include the posting of what is known as “No-Notice” data by interstate pipelines. No-Notice services give shippers on certain pipeline systems the ability to receive natural gas without the necessity of scheduling (nominating) the gas. The requirement under Order 720 for interstate pipelines to post No-Notice data has been in effect for several months, and approximately 30 interstate pipelines are providing the information.

“Utilization of the new intrastate and No-Notice data sources will significantly improve the quality of market participants’ analytical research,” Braziel said. “As a result, energy traders, market makers, supply managers and investors will be able to step up the accuracy of their decision making in the natural gas arena.”

BENTEK provides convenient, standardized access to current, daily “720” data as soon as it is made available by pipelines, storage facilities and other operators. The data is processed and enhanced through the use of BENTEK’s information collection and aggregation technologies to facilitate easy examination and analysis by BENTEK’s Energy Data Warehouse™ customers. Energy traders, developers and investors can also take advantage of intrastate data in easy-to-use BENTEK Market Models, which are daily spreadsheet-based reports designed to provide timely updates of pipeline flows, supply and demand.

For more information on FERC Order 720, please click here.