Course 06 of 20 · Natural Gas Desk Academy

Pipeline Capacity & Transportation Contracts

Stage B, Physical contracting and daily operations. Level 3 of 10.

Firm and interruptible capacity rights, tariff structures, fuel retention, and the mechanics of holding and releasing transport.

122 chapters · 11 modules · every chapter one 8 to 10 minute explainer · builds on: Course 02, Course 03, Course 05

Enrol or enquire See the 122 chapters
How a chapter is sized

One chapter is one idea taken to the point of use

Each chapter is a single self-contained explainer of 8 to 10 narrated minutes, covering one idea to the point where you can use it.

Chapters run in order. Each one assumes only what the chapters before it taught, and capability belonging to a later course is named and deferred rather than half-covered.

Curriculum

11 modules · 122 chapters

Open any module for its full chapter list, in teaching order.

M0 What a Capacity Right Is Ch 1-11
  1. Transport as a Right, Not a Journey
  2. Who the Pipeline Is and What It Sells
  3. The Shipper, the Holder and the Agent
  4. Why Anyone Buys Capacity at All
  5. The Contract Stack Behind One Movement
  6. Capacity, Throughput and the Difference
  7. What the Right Does Not Entitle You To
  8. Regulated and Unregulated Transport Side by Side
  9. How a Capacity Position Is Described
  10. Reading a Service Offering for the First Time
  11. Four Ways a Transport Right Disappoints
M1 The Transportation Service Agreement Ch 12-22
  1. The Service Agreement as a Standing Contract
  2. Maximum Daily Quantity and What Sets It
  3. Term, Rollover and the Evergreen Problem
  4. Creditworthiness as a Condition of Service
  5. Assignment, Transfer and Change of Control
  6. Default, Termination and What Survives
  7. The General Terms That Govern Everything
  8. Warranty of Title and the Gas You Tender
  9. Liability, Indemnity and Consequential Loss
  10. Amending a Service Agreement Mid-Term
  11. A Worked Reading of One Agreement
M2 Firm, Interruptible and the Priority Ladder Ch 23-33
  1. What Firm Service Actually Promises
  2. What Interruptible Service Actually Promises
  3. Interruption in Practice, Not in Theory
  4. The Priority Ladder Among Services
  5. Curtailment and the Order of Cuts
  6. Conditional Firm and the Middle Ground
  7. No-Notice and Enhanced Services
  8. Park, Loan and Short-Term Accommodation
  9. Pricing the Difference Between Firm and Interruptible
  10. When Firmness Fails: Force Majeure on the Pipeline
  11. Choosing a Service Level for a Known Obligation
M3 The Tariff and How a Rate Is Built Ch 34-45
  1. What a Posted Tariff Is
  2. How the Tariff Document Is Organised
  3. Cost of Service, in Outline
  4. The Reservation Charge and Why It Is Fixed
  5. The Commodity Charge and Variable Cost
  6. Straight Fixed Variable and Other Rate Designs
  7. Maximum and Minimum Rates
  8. Discounting and the Negotiated Rate
  9. Surcharges Riding on Top of the Transportation Rate
  10. Zone Rates and Distance-Based Pricing
  11. Rate Cases and Why Tariffs Change
  12. Building the All-In Cost of One Path
M4 Fuel Retention and In-Kind Deductions Ch 46-55
  1. Why the Pipeline Keeps Some of Your Gas
  2. Fuel Retention as a Contractual Percentage
  3. Compressor Fuel and the Physical Reason
  4. Electric Compression and the Cash Alternative
  5. Lost and Unaccounted For Gas
  6. In Kind or In Cash: Two Ways to Settle Fuel
  7. Variable Retention and the Periodic True-Up
  8. Retention Across a Multi-Segment Route
  9. Budgeting Fuel Into a Supply Obligation
  10. Where Fuel Shows Up on the Invoice
M5 Paths, Points and Segmentation Ch 56-67
  1. The Receipt Point and What It Fixes
  2. The Delivery Point and the Downstream Handoff
  3. The Point Pair That Defines a Path
  4. Primary Points and Secondary Points
  5. Point-to-Point Rights Versus Path Rights
  6. Segmentation: Splitting One Right Into Two
  7. Backhaul and Moving Against the Flow
  8. Displacement, Physical Flow and the Bookkeeping
  9. Pooling Points and Aggregating Supply
  10. Point Flexibility and Its Limits
  11. Interconnects and Who Controls Them
  12. Chaining Systems Into One Delivered Route
M6 Capacity Release and the Secondary Market Ch 68-80
  1. Why a Secondary Market for Capacity Exists
  2. Capacity Release, Mechanically
  3. Releasing Shipper and Replacement Shipper
  4. Permanent Release Versus Temporary Release
  5. Posting, Bidding and the Award
  6. Prearranged Deals and the Matching Bid
  7. Recall and Re-Put
  8. Pricing a Release
  9. Buy-Sell and Agency Arrangements
  10. Who Buys Released Capacity, and Why
  11. Taking an Assignment: the Buyer's Checks
  12. Release Rules and Market Conduct
  13. A Worked Release From Both Sides
M7 Contracting New Capacity Ch 81-91
  1. How New Capacity Gets Built
  2. The Open Season
  3. Binding and Non-Binding Bids
  4. The Precedent Agreement
  5. Conditions Precedent and In-Service Risk
  6. Anchor Shippers and What They Get
  7. Recourse Rate or Negotiated Rate
  8. Reservation Deposits and Commitment Fees
  9. Term Length as a Commercial Decision
  10. Turn-Back and Handing Capacity Home
  11. Signing Up for a New Path: a Worked Decision
M8 The Operator's Authority Over Your Right Ch 92-102
  1. The Operator's Power Over Your Right
  2. Operational Flow Orders
  3. Reading an Operator Notice
  4. Informational Postings and Where to Look
  5. Maintenance, Restriction and the Planned Outage
  6. Pressure Obligations at the Points
  7. Allocating Scarce Capability Among Shippers
  8. Penalties and Charges for Non-Compliance
  9. Overrun: Taking More Than You Hold
  10. Operating Agreements Behind the Scenes
  11. Disputing an Operator Action
M9 The Commercial Consequence of Holding Capacity Ch 103-113
  1. The Demand Charge You Pay Either Way
  2. Utilisation and the Load Factor
  3. Over-Contracting and the Cost of Caution
  4. Under-Contracting and the Cost of Being Short
  5. Capacity You Hold but Cannot Use
  6. Mitigating an Unwanted Position
  7. Credit Support Behind a Capacity Obligation
  8. A Portfolio of Paths, Not One Contract
  9. Transport Cost in a Delivered Price
  10. When It Is Right to Hold Unused Capacity
  11. Reviewing a Transport Portfolio Annually
M10 Reading the Contract, Applying the Right Ch 114-122
  1. Reading a Current Tariff From Scratch
  2. Comparing Two Transporters for One Job
  3. A Worked Transport Decision, Part One
  4. A Worked Transport Decision, Part Two
  5. Where Transport Rights Meet Daily Operations
  6. Regional Practice and Why It Differs
  7. What a Contract Cannot Tell You
  8. Five Questions to Ask About Any Capacity Position
  9. Closing: the Transport Right in Your Hands

The brochure gives each of these 122 chapters a paragraph on what it covers and what you can do once you have worked through it.

This is course 6 of twenty

It stands alone, and it is also the entry point to the Natural Gas Desk Academy pathway.

Enrol or enquire See the whole pathway