FERC Order 720: New Natural Gas Pipeline Postings Illuminate Intrastate Activity

Tuesday, October 05, 2010

The month of October 2010 marks a new chapter in the visibility of natural gas pipeline flows, capacity utilization and the dynamics of price formation. With the implementation of an important new Federal Energy Regulatory Commission (FERC) rule known as Order 720, buyers and sellers of natural gas now have unprecedented access to market supply, demand and storage data.

Order 720 requires large 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 on publically accessible internet websites (also called electronic bulletin boards, or EBBs). Interstate pipelines have posted this information for a number of years, and the data has become the foundation for the analysis of natural gas market fundamentals. But until the implementation of Order 720, pipelines operating entirely within the boundaries of an individual state were exempt from this requirement.

“Utilization of the new intrastate and No-Notice data sources will significantly improve the quality of market participants’ analytical research,” said E. Russell (Rusty) Braziel, Managing Director of BENTEK Energy.  “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.”

With the implementation of this rule, data for several key intrastate markets such as the Houston Ship Channel, Katy, Waha and Carthage is now available for analysis. Currently more than 60 intrastate pipeline systems are posting this vital flow and capacity data, including Enterprise Channel, Enterprise Texas, Energy Transfer Houston Pipeline, Energy Transfer Oasis, Atmos Pipeline, Kinder Morgan Storage, Crosstex LIG and Freeport LNG.

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 about FERC Order 720, contact your BENTEK representative, call BENTEK Sales at 303-988-1320, reply to this email or click here.