FERC Seeks Comments on Oil Pipeline Capacity Allocation Practices

published by

world pipelines,

FERC is considering the issue of pipeline capacity allocation issues that can arise when irregular events or factors, such as the COVID-19 pandemic, affect the demand for pipeline capacity. Specifically, the Commission is responding to concerns about the effects of the COVID-19 pandemic on the ability of jet fuel shippers to access pipeline capacity to supply airports. The Commission invites comments on what, if anything, it should consider to address these issues.

In today’s Notice of Inquiry (NOI), the Commission is asking the public to comment on whether changes to existing policies should be considered, such as relying on historical use when awarding pipeline capacity on a pro rata basis, taking into account the impact that abnormal conditions may have on pipeline capacity demands. The Commission is also seeking comments on how the COVID-19 pandemic has affected the availability of pipeline capacity for transporting jet fuel.

Abnormal conditions can dramatically and suddenly increase shipper nominations that exceed available pipeline capacity. Similarly, abnormal conditions may temporarily reduce the use of the pipeline system by some shippers, which could affect their future pipeline capacity allocations.

Initial comments on the NOI are due 60 days after publication in the Federal Register, with response comments due 90 after publication in the Federal Register.

Read the article online at: https://www.worldpipelines.com/regulations-and-standards/01032022/ferc-seeks-comment-on-oil-pipeline-capacity-allocation-practices/

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