August 2, 2022 - Binding New Capacity Open Season for NIT to TEP (NTT) Service

Update: Open Season Request Window Closes September 7, 2022, 4:00 p.m.; subject to change, see Closing Date section

As a result of this new offering, any unfulfilled new capacity requests from the last NTT Binding Open Season that closed on April 27, 2022, are no longer binding, and will be terminated as outlined in that Binding Open Season.  

As Saskatchewan is a net importer of natural gas and with consumption in the province growing, TGL is soliciting service bids in an attempt to assist Customers in securing their Alberta Supply gas transportation service. 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.  As a result, TGL is soliciting:

1. Requests for new NTT capacity to commence no earlier than November 1, 2027.

TGL is proactively anticipating a potential upcoming FT-D Expansion Capacity Open Season on NGTL with a potential service commencement date of November 1, 2027. TGL is not aware of the estimated expansion capacity available. TransGas requires long-term firm commitments from Customers to aggressively pursue capacity directly from NGTL and react quickly should Customers require it. This proactive approach is intended to allow for a less rushed experience than may occur should TGL wait until the potential NGTL capacity is posted. To assist TransGas with responding to the NGTL Open Season, we ask that you review your supply requirements commencing November 1, 2027, and beyond. 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. 

Please consider the following when reviewing your submission:

1)    Closing Date

Please note if the anticipated NGTL FT-D Expansion Capacity Open Season closes prior to September 7, 2022, at 4:00 p.m., TGL must and will adjust the Closing Date and time accordingly at TGL’s sole discretion. The earlier Customers can respond to this Binding Open Season the better. In contrast, should the NGTL Binding Open Season be open later than anticipated, TGL may extend the deadline at its sole discretion. 

2)    New NTT Capacity

To make incremental capacity (Alberta supply) available and respond to the anticipated NGTL Expansion Open Season, TGL is soliciting requests for new NTT capacity. 

Customers may request new NTT capacity effective November 1st of any year after October 31, 2027, assuming multiple start dates will be available (currently unknown at this time). Customers should consider the following in their response:

1. Earlier start dates (or dates that align with NGTL start dates currently unknown) and longer terms are preferred based on the NGTL term length evaluation process. The longer the term, the higher likelihood that TGL can secure the contract through the potential NGTL Expansion Open Season since they are often assessed based on term length.   Any new capacity will be awarded Yearly After Initial Term (YAIT) renewal rights with a minimum eight-year initial term for this NIT to TEP request.  Customers must include desired term.
2. Start dates should be indicated in order of declining preference on the request form. If a customer specifies dates beyond November 1, 2027, they must also indicate whether they would accept the earlier date of November 1, 2027, if it is the only date available.
3. Customers must include a minimum and maximum volume requested.
4. Bids are irrevocable and immediately binding on the Customer upon the close of this Binding Open Season.
5. TGL does not guarantee / is not obligated to satisfy all requests for new capacity.

Upon receipt of bids, all bids will be evaluated and TGL will package as needed at TGL’s sole discretion in response to the potential NGTL Binding Open Season to avoid adversely impacting TGL’s System or Customers. These requests are binding by TGL only when TGL can secure NGTL transportation contracts.  Upon award of the transport from NGTL, TGL will execute the contract with the Customer in the form of a NTT contract in the MyTransGas business system. Any additional conditions will be known once the NGTL Binding Open Season commences and communicated at the time TGL awards the contract.   

Incremental NTT Capacity will be placed in-service when the associated NGTL contracts are placed in service; while an anticipated in-service date will be made available at the time capacity is awarded, in-service may be delayed due to several reasons including, but not limited to, regulatory approval delays, construction delays (interconnecting pipeline or other), delays to facility in-service dates or other delays outside of TGL’s control. Accepted requests may use any of the indicated effective dates and any volume between the minimum and maximum, inclusive.

Without additional NGTL capacity, TGL will not have the ability to offer additional NTT service. 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. Contingent on NGTL offering the anticipated FT-D Expansion Capacity Open Season.  If this does not occur, TGL would follow up with an alternative for Customers, most likely Empress to TEP (ETT).
2. New NTT Capacity Requests in response to this Binding Open Season will be binding through February 28, 2023, or until TGL secures transport from the anticipated NGTL Binding Open Season, whichever occurs first.    
3. 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.
4. 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 (or dates that align with NGTL start dates currently unknown) and term length will be given higher priority. Same start dates and term may be prorated depending on the amount of capacity available, proportion to maximum requests and whether multiple start dates are available through potential NGTL offer. If a Customer’s prorated allocation is less than their minimum request, that allocation will be zero. 

TGL shall notify Customers with initially successful requests no later than two weeks after NGTL awards the contract(s) through the anticipated NGTL Binding Open Season. TGL will enter the new or amended contract terms into MyTransGas on the Customer’s behalf. 

Update: Requests may be submitted via e-mail or mail to TGL at the following address by September 7, 2022, at 4:00 p.m. Saskatchewan time, subject to change (see Closing Date section).

E-mail:  @email
CC:  @email;  @email

Mail:   ATTN: Tanya Lang, Director, TransGas Customer Services
            TransGas Limited
            500-1777 Victoria Avenue
            Regina, Saskatchewan
            S4P 4K5

Multiple Customer information sessions will be held to allow Customers to have questions answered related to this Binding Open Season.  Customers are strongly encouraged to attend one session. Please see your email for details regarding dates and times.   

In addition to the information sessions, if you have additional questions or would like to discuss the implications of this Open Season for your natural gas transportation and storage portfolio, please contact TGL at: