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CIG to adjust backhaul capacity evaluations

17 Nov 2017, 6.06 pm GMT

CIG to adjust backhaul capacity evaluations

Houston, 17 November (Argus) — Colorado Interstate Gas (CIG) will evaluate natural gas backhaul capacity on parts of its system with the goal of excluding forward-haul hourly transactions starting 1 December.

The pipeline told shippers this week that forward-haul hourly entitlement enhancement nominations (HEEN) have been offsetting true backhaul transactions on two particular segments of the system. The offsets may have reduced the accuracy of operationally-available capacity quantities.

The new method may result in additional backhaul capacity allocations, CIG said.

The affected transactions are from the Denver-Julesburg basin in eastern Colorado on Segment 169 headed west, and transactions from the mainline on Segment 126 headed south towards Greasewood in Arizona.

Backhaul transactions are usually non-physical in nature, and involve the delivery of gas at a location in the opposite direction of physical gas flow.

Typically, gas is delivered upstream to a customer, and is replaced further downstream by the seller.

A HEEN is a non-flowing gas transaction, and cannot be allowed to offset flowing gas backhaul transactions in the future, CIG said.

Starting next month, the pipeline said it would post notices for each nomination cycle, identifying the correct backhaul capacities at the affected segments, as well as any other segment which may be affected when capacity allocations are required.

There has been a gradual decline in gas supply from the western part of CIG in recent years, and an increase in Denver-Julesburg basin supply.

Because of these changes, CIG said it continuously avaluates available capacities, especially out of the Denver-Julesburg basin heading west.

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