NIT to TEP Shed Notice Change

Effective immediately, the NIT to TEP (NTT) shed notice period will be sixteen (16) months for all NTT contracts with an expiry date prior to November 1, 2026.

Background
In 2019 TransGas amended the NTT shed notice to 26 months. This was in line with TC Energy’s Mainline (Mainline) renewal notice of 24 months, allowing TransGas to use Mainline contracts to transport gas to the province.

For the 2021-26 Mainline settlement, TC Energy has temporarily reduced the Mainline renewal notice period to 12 months. 

At the March 2021 Customer Dialogue meeting, TransGas proposed changing the NTT renewal notice from 26 months to 16 months. The 16-month shed notice allows sufficient time for TransGas to re-offer shed NTT Service to other customers and/or to shed any offsetting Mainline transportation, while still providing flexibility to shippers by shortening the notice period from 26 months.

Customer Dialogue supported this change through a vote in March 2021, and TransGas Executive approved the change in May of 2021.

Detailed TransGas Comprehensive Tariff Changes
Previous and updated TransGas Tariff language is as follows:

General Business Policies 
II.    Transportation General Business Policies
         F.    Terminations and Renewal
                1.    Renewal Rights
                        1.1     Long Term Firm Service

PREVIOUS: “For Receipt Transportation Service initiating at NIT, this written notice must be received at least twenty-six (26) Months prior to the anniversary date.”

UPDATED: “For Receipt Transportation Service initiating at NIT, this written notice must be received at least twenty-six (26) Months prior to the anniversary date; for Receipt Transportation Service initiating at NIT with an expiry date prior to November 1, 2026, this written notice must be received at least sixteen (16) Months prior to the anniversary date.”

Impact
This will affect all new NTT contracts and existing contracts which that have a shed date prior to November 1, 2026, with the exception of contracts that have already provided shed notice based on the 26 month renewal process previously in place. This change is effective immediately. TransGas will continue to send notices to contract holders to ensure they are aware of upcoming shed deadlines. 

If you have any questions or would like to discuss the implications of this Service offering for your natural gas transportation and storage portfolio, please contact TransGas: