What is Pipeline Capacity?

Pipeline capacity is the amount of natural gas that can be transported through a pipeline at any given time. That seems simple enough, but capacity can take on several different variations. There is designed capacity, which is the originally stated capacity of the pipeline and a measure of what the pipeline should be able to handle at any one time, and there is operational capacity, which measures how much gas actually can flow at any given time. Operational capacity is oftentimes less than design capacity because of things like pipeline maintenance and backhauling that could impact available flow. Pipeline capacity is also measured in different units. In the United States, the standard measure is dekatherms, but operators also express capacity in terms of cubic feet. In order to convert dekatherms to cubic feet, one must know the average heating (btu) value of the gas. Finally, EBBs also list point vs. segment capacity, which as their names suggest, is simply capacity at a specific location versus an overall portion of the pipeline. Generally speaking, pipeline capacity tends to diminish the farther the pipeline extends downstream, everything else being equal.