South East Saskatchewan Receipt Expansion Capacity Binding Open Season Results
August 14, 2019
On May 27, 2019, TransGas issued a Binding Open Season for South East Saskatchewan Receipt Transportation Service which closed on July 24, 2019. The Binding Open Season offered 30 TJ/d, effective as early as November 1, 2020, with a minimum five-year contract. Based on the responses received, TransGas will be proceeding with the Alameda compressor station expansion and all customers that submitted a Request for Registered Queue Position will have the full requested amount allocated.
Area Capacity and Contracts
Customers requested a total capacity of 30.8 TJ/d through the Binding Open Season, with varying contract start dates throughout the November 1, 2020 to June 1, 2023 period. TransGas performed a system analysis and determined that the full 30.8 TJ/d can be supported with the completion of the Alameda compressor station. The graph below shows the phasing-in of the various Firm Receipt Transportation contracts, leaving some spare capacity for customers to take incremental Firm Demand with No Renewal Rights (NRR), if desired.
Expansion Capacity Contracts
Within the next few days, a TransGas Key Account Manager will be in touch with the successful bidders to execute the Requests for Service associated with the Binding Open Season. A condition will be included on each contract stating the effective start date of the contract is contingent on the completion date of the Alameda compressor station, currently targeted for November 1, 2020. In the event that the compressor station is completed prior to November 1, 2020, customers will have the option to make the effective start date of the contract earlier. If the facility expansion is not completed by November 1, 2020, the effective start date of the contract will be postponed until the project is complete.
Future Growth
Within the next few months, TransGas will be issuing a Non-Binding Open Season to determine if additional growth in the area is expected, and to evaluate an appropriate expansion plan to meet customer growth. If sufficient interest exists to proceed with additional facility expansions, a subsequent Binding Open Season will be issued.
Current System Operation
Total area receipt demand has exceeded total contracted demand during the last several months. As such, TransGas will continue to accommodate interruptible receipt demand when possible; however, interruptible demand curtailments may be required until the facility expansion is complete.
