February 24, 2021 - Binding Turnback and Binding New Capacity Open Seasons for NIT to TEP (NTT) Service

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

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

The timing of this offering aligns with NGTL’s Capacity Optimization Open Season allowing TGL to participate if Customer requests warrant.

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 31 or March 31 of any year (other than March 31, 2021) preceding the existing NTT 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 a minimum and maximum volume requested for turnback.

As with a transfer of firm demand, if the contract subject to an accepted turnback required Customer Specific Facilities, the Customer must reimburse TGL for any remaining portion of the TGL Investment paid out to the Customer. 

New NTT Capacity

In order to facilitate turnback requests without adversely impacting tolls, TGL is also 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, 2021 and beyond, into NTT service.

Customers may request new capacity effective any November 1st or April 1st of any year after October 31, 2021. 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 5-year initial term.

Open Season Process

Turnback or new capacity requests must be submitted by March 5, 2021 at 4:00 p.m. Saskatchewan time. At that time, all requests are 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 fair 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 shall at no time have a priority of service that exceeds any existing Firm NTT capacity.

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 a number of 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.

Example

Customer A currently holds a 10,000 GJ/d NTT contract which expires October 31, 2024; they would like to terminate as much volume as possible, as soon as possible. A request may look like the following:

Turnback Request
Minimum Volume: 0 GJ/d        
Maximum Volume: 10,000 GJ/d
Preferred Effective Dates:
Oct. 31, 2021
Mar. 31, 2022
Oct. 31, 2022
Mar. 31, 2023
Oct. 31, 2023
Mar. 31, 2024

Customer B would like to acquire 3,000 GJ/d of NTT effective November 2021 or 2022; only a full volume would be acceptable. A request may look like the following:

New Capacity Request
Minimum Volume: 3,000 GJ/d    
Maximum Volume: 3,000 GJ/d
Preferred Effective Dates:
Nov. 1, 2021
Nov. 1, 2022

In this case, TGL would be able to match these requests and provide relief to Customer A (contract would be amended to 7,000 GJ/d after October, 31 2021), and new capacity to Customer B (3,000 GJ/d effective November 1, 2021).

In the event of multiple offsetting requests, 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.

To account for NGTL’s Capacity Optimization Open Season, TGL shall notify Customers with successful requests by April 23, 2021. TGL will enter the new or amended contract terms into MyTransGas (QPTM) on the Customers’ behalf.

Requests may be submitted via email or mail to TGL at the following address by March 5, 2021 at 4:00 p.m. Saskatchewan time:

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

Email: @email
CC:  @email; @email
 

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