April 13, 2022 - Binding Turnback and Binding New Capacity Open Seasons for NIT to TEP (NTT) Service

Open Season Request Window Closes May 5, 2022 at 4:00 p.m.

***April 21, 2022 Update***: This Open Season has been updated to reflect an extension of the Open Season request window. A summary of the major changes are as follows:

• The Open Season request window has been extended to May 5, 2022. 
• TGL will notify Customer with initially successful requests no later than May 12, 2022. 

In an attempt to assist Customers in the capacity management of their NTT service, TGL is soliciting:

(1) Requests for turnback of NTT capacity; and 
(2) Requests for new NTT capacity.

TransGas is making available recently acquired NGTL border capacity and would like the ability to actively pursue additional capacity in the primary and secondary market, should Customers require it. With firm commitments from Customers, TGL can more aggressively pursue capacity in the secondary market (i.e., permanent assignments from other NGTL shippers) and react quickly to offerings in the primary market (i.e., short duration NGTL Open Seasons). In addition, by understanding TGL Customer demand for long term capacity, TGL is better able to secure NGTL capacity with a term appropriate for Customer requirements. The intended result is NTT capacity that shares much of the risk profile of the underlying NGTL capacity, while benefitting from efficiencies of scale and System optimization.

1. Turnback of NTT Capacity

A turnback of a contract effectively moves the expiry date to an earlier point in time. Customers may request turnback of all or a portion of the volume associated with active or future-dated NTT contracts. Customers may request that the turnback be effective as of October 31st, 2022, or March 31st or October 31st of any following years preceding their existing NTT contract’s expiry date. If possible, multiple preferred effective dates should be indicated in order of declining preference on the request form. If accepted, the effective date would become the new expiry date, or the date when contract volume is reduced. Customers should also include the minimum and maximum volume requested for turnback. Only long-term firm R1105 NTT Services are eligible for turnback to ensure rate neutrality. See examples set out in Schedule A. 

2. New NTT Capacity

To facilitate turnback requests without adversely impacting tolls, and to make incremental capacity available, TGL is soliciting requests for new NTT capacity. In addition to new NTT capacity requests, TGL is soliciting requests to convert future dated Empress-to-TEP (ETT) long term YAIT service with start dates of November 1, 2022, and beyond, into NTT service.  

Customers may request new capacity effective November 1 or April 1 of any year after October 31, 2022. If possible, multiple preferred start dates should be indicated in order of declining preference on the request form. Customers should also include a minimum and maximum volume requested. Any new capacity will be awarded with YAIT renewal rights with a minimum five-year initial term. Longer term bids will be accepted and will factor into the evaluation as described below. See examples set out in Schedule A.

New Capacity Requests will be binding through March 31, 2023 or until TGL offers another NTT Binding Open Season, whichever occurs first. In addition, after the close of the Open Season, Customers will always have the option to revoke any unawarded requested capacity with two weeks’ notice. See "Binding New NTT Capacity Requests After Close of Open Season" section.

Open Season Process

Turnback or new capacity requests must be submitted by May 5, 2022 at 4:00 p.m. Saskatchewan time. At that time, all requests become irrevocable and binding on the Customer. TGL is not obligated to accept any request for turnback or new capacity. Accepted requests may use any of the indicated effective dates and any volume between the minimum and maximum, inclusive.

TGL would like to provide flexibility to Customers at this time but must do so in a way that is fair to all shippers, rate neutral and provides equal access to capacity. All turnback and new capacity requests will be considered together and TGL will determine, in its sole discretion, whether acceptance of any combination of requests can be accommodated without adversely impacting TGL’s System or Customers. 

New capacity acquired through this Open Season may have the same priority of service as existing Firm NTT capacity when secured through the secondary market or other means. If additional capacity is acquired through a future NGTL Open Season, additional conditions may be required to align with NGTL and would be communicated at that time. 

This Open Season and the provision of NTT service hereunder are subject to the following terms and conditions, which may be waived by TGL in its sole discretion:

1. TGL obtaining, prior to the commencement of the NTT service, confirmation from interconnecting pipeline(s) of its ability to fulfill its transportation schedules of service with TGL through the availability of the full contract demand quantity, and on terms and conditions acceptable to TGL in its sole discretion.
2. Commencement of the NTT service is subject to several factors that may delay the commencement of NTT service, including, without limitation: 1) delays in obtaining any required confirmation from interconnecting pipeline(s) of its ability to fulfill its transportation schedules of service with TGL through the availability of the full contract demand quantity; and 2) delays in TGL receiving any required approvals.

The requests received will be evaluated and awarded based on the following:

• Earlier start dates and longer terms will be given higher priority. To better meet Customer demand for NGTL capacity, this Open Season is being awarded based on the Net Present Value of Tolls (Term * Tolls adjusted for start date… i.e., bids that start sooner and last longer are prioritized).
• In the event of multiple requests with equivalent terms, proration will occur proportional to maximum requests – if a Customer’s prorated allocation is less than their minimum request, that allocation will be zero. 
• Where a mutually preferable start date is not clear, preference will go to the earlier date.

TGL shall notify Customers with initially successful requests no later than May 12, 2022. TGL will enter the new or amended contract terms into MyTransGas on the Customer’s behalf. Customers will be notified of any future-acquired capacity beyond May 12, 2022 as NGTL capacity is secured.

Binding New NTT Capacity Requests After Close of Open Season

All new capacity requests will remain binding through March 31, 2023.  

To continue to satisfy Binding Open Season requests, TGL will work on acquiring transport with interconnecting pipelines. The following conditions apply to the responses to this Binding Open Season:

• New capacity requests are binding on Customer through March 31, 2023 or until another Binding Open Season for NTT service is issued, whichever occurs first. In addition, a Customer may revoke any unawarded capacity from their Binding Capacity request after the close of this Open Season; a two-week revoke notice is required by sending an email to your Key Account Manager (KAM). The KAM will respond by email verifying the status of your request. 
• Future Binding NTT Open Seasons may be offered at TransGas’ discretion and may be contingent on the number of requests remaining, and condition of the primary and secondary market. 
• Fulfillment of binding requests is not guaranteed. Once the binding term is complete, or a new NTT Binding Open Season is held, all unfulfilled requests will be terminated. 
• New capacity will be awarded at least 90 days prior (or as otherwise agreed) to the start of new Service.

Once acquired, TGL will enter the new or amended contract terms into MyTransGas on the Customer’s behalf.

Requests are to be submitted via e-mail or mail to TGL at the following address by May 5, 2022 at 4:00 p.m. Saskatchewan time:

Attention:  Tanya Lang, Director, TransGas Customer Services
TransGas Limited
500-1777 Victoria Avenue
Regina, Saskatchewan
S4P 4K5
E-mail: @email
CC:  @email; @email

 

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 at: