February 22, 2023 - Binding New Capacity Open Season for NIT to TEP (NTT) Service

Open Season Request Window Closes March 10, 2023, 4:00 p.m. Saskatchewan time; 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 (which closed September 7, 2022) that were binding through to February 28, 2023, 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, TransGas is soliciting service bids in an attempt to assist Customers in securing their Alberta Supply gas transportation service. TransGas 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, TransGas is soliciting:

1.  Requests for new NTT capacity to commence no earlier than April 1, 2026.

With continued uncertainty about availability of NGTL transport, TransGas is again proactively preparing for any potential FT-D Expansion Capacity Open Season. 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 TransGas wait until any potential NGTL capacity is posted. To assist TransGas with responding to an NGTL Open Season, we ask that you review your supply requirements commencing April 1, 2026, and beyond. In addition, by understanding TransGas Customer demand for long term capacity, TransGas 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 any NGTL FT-D Expansion Capacity Open Season closes prior to March 10, 2023, at 4:00 p.m. Saskatchewan time, TransGas must and will adjust the Closing Date and time accordingly at TransGas’ 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, TransGas may extend the deadline at its sole discretion. 

2)    New NTT Capacity

To make incremental import receipt capacity available and respond to the anticipated NGTL Expansion Open Season, TransGas is soliciting requests for new NTT capacity. Customers may request new NTT capacity effective April 1st or November 1st of any year after March 31, 2026. Customers should consider the following in their response:

1. Earlier start dates and longer terms are preferred based on the NGTL term length evaluation process. The longer the term, the higher likelihood that TransGas can secure the contract through any 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 April 1, 2026, they must also indicate whether they would accept the earlier date of April 1, 2026. 
3. Customers must include a minimum and maximum volume requested. 
4. For preliminary planning purposes, it would be helpful to TransGas if the Customer would indicate the meter code(s), or planned future facility, with corresponding volume that may be associated with the requested incremental increase to NIT to TEP service.  Note this section only is non-binding and will assist TransGas in facility planning.
5. Bids are irrevocable and immediately binding on the Customer upon the close of this Binding Open Season. 
6. TransGas does not guarantee it will, nor is it obligated to, satisfy all requests for new capacity, or that requested capacity will align with the requested start date(s).

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

Incremental NTT Capacity will be placed in-service when the associated NGTL and TCPL Mainline 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 TransGas facilities), events of Force Majeure, delays to facility in-service dates or other delays outside of TransGas’ reasonable control. Accepted requests may use any of the indicated effective dates and any volume between the minimum and maximum, inclusive.

Without additional NGTL and TCPL Mainline capacity, TransGas will not have the ability to offer additional NTT service. This Open Season, and the provision of NTT service hereunder, are subject to the TransGas Comprehensive Tariff (where applicable), and the following terms and conditions, which may be waived by TransGas in its sole discretion:

1. This offer is contingent on NGTL offering an FT-D Expansion Capacity Open Season.  If this does not occur, TransGas would endeavour to follow up with an alternative for Customers, most likely Empress to TEP (ETT), likely through a separate Binding Open Season with its own terms and conditions. Additionally, if any NGTL offering lacks sufficient volume to meet Customer NTT demand, TransGas would follow up with an ETT offering, with its own terms and conditions.
2. New NTT Capacity Requests in response to this Binding Open Season shall be binding through November 30, 2023 or until TransGas secures transport from an NGTL Binding Open Season, whichever occurs first.  If an initial NGTL offering lacks sufficient volume to meet Customer NTT demand from this Binding Open Season, requests will remain binding through November 30, 2023; should this occur, TransGas will communicate this to impacted customers. 
3. This offer is contingent on TransGas obtaining – prior to the commencement of the NTT service - confirmation from interconnecting pipelines of their ability to fulfill their transportation schedules of service with TransGas through the availability of the full contract demand quantity.  The terms and conditions must be acceptable to TransGas in its sole discretion.
4. Commencement of the NTT service is subject to several factors that may delay the commencement date, including, without limitation: 1) delays in obtaining any required confirmation from interconnecting pipelines of their ability to fulfill their transportation schedules of service with TransGas through the availability of the full contract demand quantity; 2) delays in TransGas receiving any required approvals; and 3) TransGas’ ability to build required facilities to satisfy the requests.  In-service dates of these facilities may result in varying start dates.  

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

• Earlier start dates and term length will be given higher priority. Same start dates and term may be prorated depending on the amount of capacity available. If a Customer’s prorated allocation is less than their minimum request, that allocation will be zero. 

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

Requests may be submitted via e-mail or mail to TransGas at the following address by March 10, 2023, 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

 

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: