Operational Flow Orders: Why They Matter for Pipeline Reliability
- Timothy Beggans
- 3 days ago
- 1 min read
Pipeline systems depend on balance—too much gas in or too much taken out can threaten pressure, integrity, and firm service. That’s why operators issue Operational Flow Orders (OFOs), a critical tool to stabilize system conditions during stress.
Why OFOs Are Called
OFOs typically arise when linepack is tight, weather spikes demand, storage swings are limited, or shippers’ receipts and deliveries drift out of balance. When these conditions threaten safe operating pressure or system flexibility, operators restrict tolerances and require shippers to match scheduled flows more precisely.
What OFOs Require
During an OFO, shippers must follow strict rules to keep receipts, deliveries, and daily usage aligned. Tolerance bands shrink, nomination flexibility declines, and storage withdrawals or injections may be restricted.
Penalties for Non-Compliance
Failing to meet OFO requirements can lead to substantial financial penalties—often per-Dth charges far above market value. On some systems, penalties escalate during “critical days,” where even minor imbalances can trigger unauthorized charges. The goal is deterrence: shippers must correct imbalances quickly to protect system integrity.
Impacts on Transportation & Storage Strategy
OFOs force tighter scheduling discipline and greater reliance on storage or balancing services to absorb short-term volatility. Shippers often adjust nomination patterns, use no-notice storage to maintain compliance, and refine forecasting to reduce exposure. For marketers and utilities, OFOs reshape optimization strategies, narrowing arbitrage options and prioritizing reliability.
As demand becomes more variable and regional constraints tighten, mastering OFO compliance—and integrating it into commercial strategy—is becoming essential across the North American gas network.
Links:
Transco OFO Training: https://www.1line.williams.com/Transco/files/training/Critical_Day.pdf
Texas Eastern (Enbridge): https://infopost.enbridge.com/infopost/TEHome.asp?Pipe=TE
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