October 5, 2010
Union Gas Limited ("Union"), a Spectra Energy Company, hereby invites all existing and potential shippers to submit binding bids for High Deliverability Storage at Dawn starting November 1, 2010 (the "Open Season"). All bids are due on or before 11:30 am Eastern Standard Time / 10:30 am Central Standard Time on October 29, 2010.
This Open Season is now closed.
- View the High Deliverability Storage Service Contract
- View the Open Season Description
- View the High Deliverability Bid Form
If you would like an Open Season closing date reminder added to your Outlook Calendar, please use our calendar invitation
Interested parties have the opportunity to submit bids for the following:
Union expects to award capacity on or before 2:00 pm Eastern Standard Time / 1:00 pm Central Standard Time on October 29, 2010. Union reserves the right to reject any and all bids at its sole discretion.
If you have any questions regarding this Open Season, please feel free to contact your Storage and Transportation Account Manager:
| Jacquie Montgomery | (519) 436-5452 |
| Paolo Mastronardi | (519) 436-5264 |
| Michael Cadotte | (519) 436-5311 |
| Leah Moss | (713) 627-5054 |
The Union Gas Dawn Market Hub is one of the fastest growing market hubs in North America. Union owns and operates over 150 Bcf of storage at Dawn Market Hub. The Dawn Market Hub has the largest underground natural gas storage facility in Canada and handles over 1.3 TCF of gas every year. Storage and transmission facilities at the Dawn Market Hub are fully integrated into the North American supply and transportation system providing our shippers with price stability and significant supply options.
More information about Union Gas Limited is available at www.uniongas.com
More information on Spectra Energy is available at www.spectraenergy.com
Union Gas Limited ("Union") Binding Open Season – High Deliverability Storage Service and Additional Firm Injections and Firm Withdrawals – Invitation to Bid
Minimum Bid Requirement for High Deliverability Storage Service:
Union has 2,610,110 GJ's of space and up to 130,506 GJ/d of Firm Injections and 169,657 GJ/d of Firm Withdrawals. Bidders interested in purchasing Firm Injections and Firm Withdrawals greater than the Minimum Bid Requirement must adjust their bid price accordingly.
Term
High Deliverability Storage Service is expected to commence November 1, 2010 or bidder may request an alternate start date, after November 1, 2010, on the High Deliverability Storage Service Bid Form (the "Bid Form") for a contract term of a minimum of 2.4 years.
Storage Delivery and Receipt Points
Dawn (Facilities) will be the receipt and delivery point.
Fuel & Commodity rate
In addition to the bid price for High Deliverability Storage Service, shippers will be required to supply their own fuel and pay a commodity charge on all quantities injected or withdrawn from storage. The fuel rate and commodity charge will be those specified in Union’s Market Price Service Schedule.
The current commodity charges are:
| Service | Current Rates | |
| CDN/GJ | Fuel | |
| Injection Customer provides Fuel (includes commodity & dehydration) |
$0.007 | 0.6% |
| Withdrawal Customer supplies Fuel (includes commodity & dehydration) |
$0.007 | 0.6% |
Pricing
Bidders should consider submitting bids in excess of the Minimum Bid Requirement (i.e. price and term), based on bidder’s value for the service, bidder’s variable costs, and to give a higher priority to bidder’s bid.
Bids will be evaluated using a Present Value method using a discount factor of 6% per year.
The bid price for this High Deliverability Storage Service will increase by a factor equal to ½ the annual increase in the Consumer Price Index, commencing the second April 1 after the commencement of service, and each April 1 thereafter, as is more particularly described in the contract relating to this service.
Contracts
Union will award capacity on October 29th, 2010 and bidders will execute a High Deliverability Storage Contract by November 1, 2010.
View the High Deliverability Contract
Addition Firm Injection and Firm Withdrawal Service (Minimum Bid Requirements do not apply)
Shippers may submit bids for Additional Firm Injections and Firm Withdrawals to be added to their existing Union storage contract.
Shipper shall elect the quantity, term and bid price of the Additional Firm Injections and Firm Withdrawals. No incremental commodity charges shall apply for this service.
Submitting Bids and Awarding of Service
All bids are due on or before 11:30 am Eastern Standard Time / 10:30 am Central Standard Time on October 29, 2010. Union expects to award capacity on or before 2:00 pm Eastern Standard Time / 1:00 pm Central Standard Time on October 29, 2010.
Please provide your binding bid under the above terms and conditions by signing and returning the enclosed Bid Form indicating the price (CDN/GJ/year of MSB), Maximum Storage Balance desired, Additional Firm Service (if desired) and Term.
Union reserves the right to make acceptance of any binding bid conditional upon receiving reasonable financial assurances for the obligations pursuant to this Open Season.
Union reserves the right to make its acceptance of any bid conditional upon satisfaction or waiver of conditions precedent set out in Section 3.02 of the High Deliverability Storage Contract.
Each bid will be evaluated separately. If two or more successful bids have an equivalent value, and insufficient capacity exists to satisfy all such bids with an equivalent value, the capacity allocated to such bids will be prorated.
Union reserves the right to reject any and all bids at its sole discretion. Without limiting the foregoing, Union may, but is not required to, reject any bids which do not conform to the Open Season, are incomplete with the terms and conditions outlined in the Open Season, contain additional or modified terms, or are otherwise deficient in any respect.
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