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Change hits pipeline. (contract carriage of natural gas by Great Lakes Transmission Co.) (column)
NEW YORK--If contract carriage is the wave of the future for interstate pipelines, Great Lakes Transmission Co. has collided with the future ahead of schedule.
Between the third quarter of 1983 and the third quarter of 1984, Great Lakes lost 85 percent of its buy-and-sell gas business. Such deliveries totaled 7 billion cubic feet (bcf) for the July-September quarter of 1983 and 1 bcf for the same 1984 period.
Traditionally, interstate pipelines buy and resell gas under long-term contracts. Critics of the traditional system say this makes gas prices resistant to market pressure.
Many pipelines have increased the quantity of short-term gas they deliver to local utilities and users for a …
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