LP Gas, March 2018
NPGA Airlines for America seek equal treatment for pipeline shippers N PGA and Airlines for America A4A the industry trade organization for the leading U S airlines filed a petition for rulemaking at the Federal Energy Regulatory Commission FERC requesting the agency extend its affiliate standards of conduct regulations to the multiproduct pipeline industry According to the U S Energy Information Administration the development of new technologies over the last several years has increased the production of crude oil and associated petroleum products including propane There has also been an increase in domestic natural gas liquids NGL production due to advances in shale oil and gas development Additionally the multiproduct pipeline industry has gone through restructuring spinning off midstream transportation and storage assets and engaging in the marketing of these products through companies affiliated with the pipelines according to NPGA and A4A Public information indicates that crude oil NGL and petroleum pipelines appear to have been engaged in offering preferential discriminatory rates to their marketing affiliates not offered to nonaffiliated shippers the trade groups say According to NPGA and A4A the pipelines have also shared nonpublic transmission information with affiliated marketing entities and such abuses violate By filing with FERC the groups are seeking increased transparency the Interstate Commerce Act This law intends to ensure that common carriers including crude oil NGL and petroleum product pipelines treat all shippers equally in terms of transportation access and price The filing is asking FERC to establish rules about affiliate relationships that will increase transparency says Jeff Petrash vice president and general counsel at NPGA Both NPGA and A4A want to ensure that the pipelines are charging proper rates LPGasmagazine com March 2018 LPGas 83 PHOTO BY ISTOCKPHOTO COM ELIZA SNOW
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