November 1, 2021 - Obligation Enforcement in Effect and Revision to Obligation Enforcement

Over the past several months, TransGas held virtual customer information sessions, and sent out communications, regarding Obligation Enforcement and managing your shipper inventory accounts.

Please be advised that as of Monday, November 1, 2021, the Obligation Enforcement Clause of the TransGas Tariff comes into effect. Daily Balances outside of the defined tolerance range will be subject to enforcement.    

The enforcement mechanisms available to TransGas are outlined below. In past communications, these mechanisms included: “(ii) Adjust Customer’s allocations received from the Common Stream Operator to match current Day Nominations.”  In light of feedback received from customers, and through TransGas’ internal governance processes, this mechanism has been removed.  It has been replaced with: “(iv.) Restrict flows at points of receipt and delivery to ensure compliance.” which was previously included in the Tariff as 4.5 Right to Restrict Flows.

If a Shipper fails to meet their balancing obligation, enforcement may include:
i.    Adjusting your current day nominations and acquiring more gas to be added into your Imbalance Account, or removing gas from your Imbalance Account, as the case may be;
ii.    Cancelling all, or a portion of any, title transfer(s) from your Shipper Imbalance Account at TEP prior to the end of the next day; 
iii.    Settling the difference in quantity by purchasing or selling gas to bring your account back into tolerance; and/or
iv.    Restricting flows at points of receipt and delivery.

In addition, to aid Shippers in managing their Daily Account balance, TransGas has updated the Inventory Balance by Day report. The new report is now available in MyTransGas.

Additional details on Obligation Enforcement and managing your shipper inventory account, including a list of frequently asked questions and information on running helpful reports in MyTransGas, are available. 

If you have further questions or would like to discuss your natural gas transportation and storage portfolio, please contact TransGas at: