Understanding the NAESB Nomination Models for Ranking and Comparisons
Explore the NAESB Nomination Models used in the energy industry for ranking and comparisons. Learn about threaded and non-threaded pathed activities, as well as how ranks are applied to scheduling restrictions and balancing transactions. Discover the flexibility and dynamics of these models in managing shipments and market interactions.
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www.kindermorgan.com Ranking Example
Model Comparisons NAESB Nomination Model used in PASSKEY = Pathed (threaded) Threaded refers to linking a shipper s specific commercial counterparties at receipt and delivery locations to a specific pathed transport nomination line item, and to each other. Ranking are inputted at receipt and delivery ends of path. Ranks are used in applying scheduling cuts (of within same level of priority), balancing transactions caused by receipt and delivery reductions (both during confirmations and pipeline balancing) across all of a shippers contracts at a scheduling restriction or balancing location. Once a path is determined to be cut the linked market (or supply) must be cut. There is no flexibility to allow shippers to unthread their transactions. NAESB Nomination Model used in DART= Pathed Non-threaded Allows a shipper to separate commercial counterparty (buy/sell) transactions at specific locations from transportation transactions between locations. Gives shippers more flexibility of their business via ranks. Shippers can individually rank supplies and markets, receipt and delivery locations, and paths between receipt and delivery locations. This model also inherently supports cross-contract ranking for balancing transactions caused by receipt and delivery reductions (both confirmations and pipeline balancing). Path ranks are used to apply scheduling restrictions among all the paths within a given contract. Once a path is cut, the shippers ranks dictate which market (or supply) gets cut. There is no linked supply to market forced cuts. 2
Example of Pathed Non-threaded (DART) This activity is pathed because a specific receipt location is tied to a specific delivery location on each line item. Up ID AAAAA Down ID XXXXX Delivery Point B Down ID YYYYY Up ID BBBBB Receipt Point A Delivery Point C Down ID ZZZZZ Up ID CCCCC Delivery Point D Down ID YYYYY Up ID DDDDD This activity is not threaded because commercial counterparties at the either end of the path are not specifically linked to each other. For example: receipt reductions of upstream suppliers is fully in the control of the shipper via separately identified ranks all the way to the ultimate downstream markets. 3
Example of Pathed Non-threaded (DART) with Ranks Receipt Rank (Downstream Transport Line Item at Point A); ranking paths across contracts for cuts coming from suppliers to delivery paths across contracts. Delivery Rank (Upstream Transport Line Item at each Point B, C, & D); ranking paths across contracts for cuts coming from markets to receipt paths across contracts. Atmos 42 Elm Gas 40 10 B: 2 41 420207 Mahwah 30 31 32 Hess BP A: 1 20 Energy C: 420999 21 420285 Mendon 20 2 10 11 Cherry Nat Midwest 22 D: 1 420101 Rivervale 10 10 Down Elm Gas Sequent 12 KT Path rank; ranking which path within a KT for cuts arising from pipeline scheduling (within a priority of service) Upstream Rank (Buy Line Items at Point A); ranking suppliers for cuts coming from delivery points Downstream Rank (Sell Line Items at each Point B, C, & D); ranking markets for cuts coming from receipt points 4
Example of Segment Scheduling Sch = 0 Upstream (Buy) rank KT Path rank Sch = 5 Atmos Elm Gas 40 2 420207 Mahwah PT A Sch = 70 Sch = 10 Sch = 5 30 32 Hess BP Energy 420999 1 420285 Mendon 20 Sch = 30 Sch = 30 2 Cherry Nat Midwest 22 420101 Rivervale 10 Sch = 30 Sch = 30 1 Sequent Elm Gas Assumptions: Segment Cut All SOP Total Nominated = 120 All Up/Dn Parties Nom = 30 Total Scheduled = 70 10
