U.S. GAS LINE CONTRACT CARRIAGE ON THE RISE

May 18, 1992
The Interstate Natural Gas Association of America reports contract carriage moved 84% of the gas delivered to U.S. markets in 1991, up from 79% the previous year. Carriage for market-transportation for distributors, end users, and marketers-totaled 15.2 quadrillion BTU, a 13% increase from the 13.4 quads reported at the end of 1990. Ingaa said growth in carriage volumes has slowed. This year's 13% increase is lower than the 28% growth in carriage volumes from 1988 to 1989 and the 72% from

The Interstate Natural Gas Association of America reports contract carriage moved 84% of the gas delivered to U.S. markets in 1991, up from 79% the previous year.

Carriage for market-transportation for distributors, end users, and marketers-totaled 15.2 quadrillion BTU, a 13% increase from the 13.4 quads reported at the end of 1990.

Ingaa said growth in carriage volumes has slowed. This year's 13% increase is lower than the 28% growth in carriage volumes from 1988 to 1989 and the 72% from 1986 to 1987.

Total natural gas delivered to market was 18 quads in 1991, an increase of 5% from the 1990 level of 17.1 quads.

Pipeline sales accounted for only 16% of the gas delivered to market in 1991. They dropped 0.8 quads, or 22%, from 1990 levels.

Ingaa said while the market relies heavily on carriage throughout the year, reliance on carriage is somewhat heavier-as has been the case since 1986-during the off peak season in April-September.

Carriage in the 1991 peak season averaged about 81% of the total delivered for market, compared with 88% during the off season.

However, Ingaa said, in the last 2 years there has been less difference between peak and nonpeak use of carriage. The warm winters at the end of 1990 and at the start and end of 1991 probably are a major cause.

Those warm winters may have made customers less reliant on pipeline sales service. At the same time, the market may be settling down as shippers gain confidence in the performance of interruptible transportation.

Ingaa said interruptible transportation has remained relatively static at more than 50% of deliveries for market since 1987. But firm transportation and sales have swapped places as the use of firm transportation continued to grow.

Firm transportation accounted for 30% of total interstate gas volumes delivered for market in 1991, up from 28% in 1990.

Copyright 1992 Oil & Gas Journal. All Rights Reserved.