Single Capacity Agreement

A single capacity agreement is a vital document that regulates the capacity of a natural gas pipeline between a shipper and a pipeline operator. The agreement outlines the maximum amount of natural gas that a shipper can transport through a pipeline, a process known as nomination. This article explores the benefits of a single capacity agreement and the key elements that make up the document.

Benefits of a Single Capacity Agreement

A single capacity agreement provides a clear understanding between the shipper and the pipeline operator on the amount of natural gas that can be transported through the pipeline. This clarity helps to regulate gas flow, which in turn ensures a consistent supply of natural gas to the market. The agreement also provides a framework for allocating pipeline capacity among shippers, which reduces the likelihood of disputes and promotes fair competition.

A single capacity agreement also helps to ensure the safety and reliability of the pipeline system. Pipeline operators have an obligation to maintain safe and reliable operations, and a clear agreement on pipeline capacity helps to achieve this goal. By ensuring that the pipeline system operates within its designed capacity, the risk of accidents and pipeline failures is reduced.

Key Elements of a Single Capacity Agreement

A single capacity agreement typically includes several key elements, which include:

1. The capacity of the pipeline – the maximum amount of natural gas that can be transported through the pipeline.

2. The term of the agreement – the duration of the agreement between the shipper and the pipeline operator.

3. Nominations – the process by which the shipper notifies the pipeline operator of the amount of natural gas to be transported through the pipeline.

4. Curtailment – the process that outlines how the pipeline operator will reduce or interrupt shipments of natural gas in times of pipeline emergencies, maintenance, or capacity constraints.

5. Force Majeure – provisions that outline the responsibilities of both parties in the event of unexpected events, such as natural disasters, acts of war, or acts of terrorism.

6. Rates and charges – the fees that the shipper will pay to transport natural gas through the pipeline.


A single capacity agreement is a critical document that regulates the transport of natural gas through pipelines. It is an essential tool for ensuring the safety, reliability, and efficiency of pipeline systems, promoting fair competition among shippers, and providing a consistent supply of natural gas to the market. By including the key elements of a single capacity agreement, both shippers and pipeline operators can benefit from its clarity and predictability.


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