With the rapid growth of natural gas production from shale plays and growing demand due to low gas prices, pipeline companies have been scrambling to expand and reconfigure their systems to serve the needs of a changing gas marketplace. Federal Energy Regulatory Commission (FERC) rules generally govern the commercial terms pipelines can offer prospective capacity purchasers, and also provide a measure of protection for the unwary. If you are looking to contract for capacity, an understanding of these rules not only makes good business sense but may also help you get a leg up on your competitors. In this article, a condensed version of which was published in the June 2016 issue of Pipeline & Gas Journal, Barbara Jost and Glenn Benson provide the advice you need.
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