Firm Dawn to Dawn (TCPL) Transportation Service Open Season
May 19, 2010
In response to Shipper interest in exports at Dawn to TransCanada Pipelines, firm transportation from Dawn to Dawn (TCPL) is being offered in a binding open season for service commencing November 1, 2010.
The North American natural gas market continues to evolve. As Western
Canadian supply declines and Marcellus Shale supply expands, the gas
flows into and out of the Dawn Hub will likely change. In response to
the changing market, Union Gas is developing this new firm
transportation service. This proposed new service, which will also
require modifications to the facilities at the Dawn Hub, will provide
Shippers with firm transportation from Dawn to the Dawn (TCPL) pipeline
interconnect. If developed, this service will enable Shippers to move
gas physically, on a firm basis, from Dawn to TransCanada Pipeline’s (“TCPL”)
interconnect within the Dawn Hub without relying on displacement. More
information about the Dawn Hub and Dawn to Dawn (TCPL) transportation
route is available in the April 2010 edition of
Dawn Horizon, the Union Gas Storage & Transportation
newsletter.
This Open Season is now closed.
Firm Transportation Service Parameters - 10 year term
Receipt point - Dawn Facilities
Delivery point - Dawn (TCPL)
Minimum Term - 10 years
Demand Charge - expected to be approximately $0.005 to $0.010 per GJ/day
Dependent on quantities contracted
subject to Ontario Energy Board (“OEB”) approval
Fuel - Summer approximately 0.20%, winter approximately 0.75%
In accordance with C1 Rate Schedule
Subject to OEB approval
At the request of market participants, Union Gas is now offering a second term option for this service. A 5-year term offering has been added as a option for Shippers to select. The Demand Charge for this option has been adjusted to reflect the shorter term.
Firm Transportation Service Parameters - 5 year term
Receipt point - Dawn Facilities
Delivery point - Dawn (TCPL)
Minimum Term - 5 years
Demand Charge - expected to be approximately $0.010 to $0.020 per GJ/day
Dependent on quantities contracted
subject to Ontario Energy Board (“OEB”) approval
Fuel - Summer approximately 0.20%, winter approximately 0.75%
In accordance with C1 Rate Schedule
Subject to OEB approval
Union Gas is offering up to 500,000 GJ/day of capacity for this new firm transportation service. The service is proposed to be in accordance with Union’s C1 Rate Schedule. Union Gas anticipates submitting a rate application for this new service during second quarter of 2010.
If you would like an Open Season closing date reminder added to your Outlook Calendar, please use our calendar invitation.
Documents, Contracts and Bid Forms
Successful open season bidders will be required to execute a Union Gas C1 Transportation Contract. The current C1 Rate Schedule and General Terms and Conditions are available online, and is subject to revision from time to time.
If you have any questions about this Dawn to Dawn (TCPL) open season, please contact either your account manager or:
| Warren Reinisch | wreinisch@uniongas.com | (519) 436-4663 |
| Tina Hodgson | thodgson@uniongas.com | (519) 436-4606 |
Submitting Bids and Awarding of Service
All valid bids will be responded to in writing on or before 2:30 p.m. Eastern Time on June 3, 2010 advising of the actual quantity awarded to Shipper, if any. Contracts must be executed by the Shipper and all Shipper conditions precedents waived by no later than June 11, 2010 in order for Union to have the service in place by the commencement date.
Union has the right to reject any and all bids, in its sole discretion. Without limiting the foregoing, Union may, but is not required to, reject any bids that do not conform to the Dawn to Dawn (TCPL) Open Season parameters, are incomplete with the terms and conditions outlined herein, contain additional or modified terms, or are otherwise deficient in any respect. Capacity shall be allocated first to those bids with the longest term. If the terms of separate bids are equal, then service shall be offered on a pro-rata basis.
By participating in this open season, Shipper further agrees to the terms and conditions set out in the Dawn to Dawn (TCPL) Transportation Service Bid Form.
Completed form must be returned on or before 12:00 noon Eastern Time on May 27, 2010.
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