Southeast Saskatchewan Binding Turnback / Binding New Capacity Open Seasons for Receipt Service (January 5 to January 29, 2021)
January 5, 2021
TransGas (TGL) continually assesses its system and Customer specific facilities to enable transport service to meet changing demand. TGL has observed significant changes in contracting levels since having conducted an Open Season in the fall of 2019, and is proposing to conduct two new Open Seasons to better understand upcoming contract demand requirements by shippers in Southeast Saskatchewan (SE SK). These Open Seasons for SE SK, as shown in Appendix A, are (1) for early turnback of existing receipt service and (2) for new receipt service. The overall available capacity to be awarded through the new SE SK receipt service Open Season will be dependent on the request for turnback. In an attempt to assist Customers in the capacity management of their receipt service, and to ensure the long-term appropriateness of TGL capital projects, TGL is soliciting:
- Turnback requests of firm receipt SE SK service, effective on a final day of any month from February – October 2021.
- New receipt SE SK service requests, effective on the first day of any month from March – November, 2021.
Turnback of Receipt Capacity
A turnback of a contract effectively moves the expiry date of an existing contract to an earlier point in time. Customers may request to turn back all or a portion of their current or future dated receipt service, on a final day of any month from February – October 2021. Turnback receipt contracts must be in the geographical area as shown in Appendix A. If possible, multiple preferred effective (turnback) dates should be indicated in order of declining preference on the request form as shown in the example below. If accepted, the effective date would become the new expiry date / the date when the contract volume is reduced. Customers should also include a minimum and maximum volume requested for turnback. TGL will assess and consider all turnback requests and accommodate as reasonably possible.
As with a transfer of firm demand, if the contract of an accepted turnback request required Customer Specific Facilities, the Customer must reimburse TGL for any remaining portion of the TransGas Investment paid out to the Customer.
Any capacity awarded from the Binding Open Season issued on May 27, 2019 which resulted in a five (5) year receipt contract is not eligible for this turnback Open Season.
Interested parties are asked to complete and return form in Appendix B with details on their turnback request.
New Receipt Capacity
TGL is soliciting requests for new SE SK receipt capacity in order to facilitate growth in the area and turnback requests.
Customers may request new SE SK capacity effective on the first day of any month from March – November, 2021 as shown in the example below. 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 capacity requested. Any new capacity will be awarded with Yearly After Initial Term (YAIT) renewal rights with a minimum 1-year term unless a longer term is indicated. TGL will prioritize awarding capacity to longer terms requested.
Interested parties are asked to complete and return the form in Appendix C with details on their new capacity request. If requests received by TGL exceed the available capacity at a meter, TGL will prepare an estimate for a meter or facility upsize.
Binding Open Season Package
This Binding Open Season is being conducted pursuant to the terms and conditions contained within the TransGas Comprehensive Tariff (the Tariff), as amended herein.
Binding Open Season Process
All Turnback and New Receipt Capacity requests must be submitted by January 29, 2021 at 4:00 p.m. Saskatchewan time. At that time, all requests are irrevocable and binding on the Customer. Accepted requests may use any of the indicated effective dates identified. TGL reserves the right to determine which requests are accepted; TGL is not obligated to accept any request for turnback or new capacity.
Below is an example of how the turnback and new requests will be considered:
Customer A currently holds a 10,000 GJ/d receipt contract that expires July 31, 2021; 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:
February 28, 2021
March 31, 2021
April 30, 2021
May 31, 2021
June 30, 2021
Customer B would like to acquire a 3,000 GJ/d receipt contract effective as early as May 1, 2021, and 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:
May 1, 2021
June 1, 2021
July 1, 2021
In this case, TGL would be able to fill these requests and provide relief to Customer A (contract would be amended down to 7,000 GJ/d after April 30, 2021), and award new capacity to Customer B (3,000 GJ/d effective May 1, 2021). In the event of multiple offsetting requests, proration will occur proportional to maximum requests, with first preference given to term — if a Customer’s prorated allocation is less than their minimum request, that allocation will be zero. Preference will go to the earliest preferred date.
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 with 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 will be accommodated.
Customers may submit requests for more than one receipt service and/or location. TGL will acknowledge the successful receipt of your submitted request forms.
TGL will notify Customers of the results of their requests on or before February 17, 2021. TGL will enter the new or amended contract terms into the MyTransGas Electronic Business System on the Customers’ behalf. All increases to firm receipt capacity will be subject to a review of Customer specific facilities to ensure appropriate capacity of piping, measurement and gas quality monitoring equipment. If Customer specific upgrades are required to facilitate a higher flow, the Customer(s) shall be notified.
Please note that TGL will not be processing any Requests for Service for incremental Long Term Firm capacity for meters within the Open Season Area as shown in Appendix A until after the Binding Open Season bids have been awarded. Short Term Firm contracts (month to month) will remain available throughout the duration of this Open Season for contracts ending prior to March 1, 2021. If capacity remains after the close of the Binding Open Season future Requests for Service will be awarded on a first come first serve basis through the MyTransGas Business System.
Requests may be submitted via e-mail or mail to TGL at the following address:
Attention: Tanya Lang, Director, TransGas Customer Services
TransGas Limited
500-1777 Victoria Avenue
Regina, Saskatchewan, S4P 4K5
E-mail: TransGas Customer Services
CC: aschmidt@transgas.com; atulloch@transgas.com
If you have any questions, please contact Tanya Lang, Director, TransGas Customer Services at 306-531-6240, or Key Account Managers Alexis Schmidt at 306-530-5499 or Adam Tulloch at 306-551-9350.