Binding Open Season for Peak Storage Services
January 19, 2012
This Open Season is Closed
Union Gas Limited, a Spectra Energy company, hereby invites all existing and potential shippers to submit binding bids for Dawn storage starting as early as February 1, 2012. All bids are due on or before 11:30 am Eastern Standard Time / 10:30 am Central Standard Time on January 25, 2012.
Interested parties have the opportunity to submit bids for Peak Storage - a firm storage service with a term of 1 to 10 years.
Union Gas expects to award capacity on or before 2:00 pm Eastern Standard Time / 1:00 pm Central Standard Time on January 25, 2012. Union Gas reserves the right to reject any and all bids at its sole discretion.
If you would like an Open Season closing date reminder added to your Outlook Calendar, please use our calendar invitation.
View a printable version of the Open Season Package.
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 Gas owns and operates over 150 Bcf of storage at Dawn. 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.
Service Parameters - Peak Storage Service
All contracts awarded will be 100% "take-or-pay" and will be billed monthly, prorated over the term of the contract.
Injections:
5% of Maximum Storage Balance (MSB) daily on an interruptible basis.
Withdrawals:
Firm withdrawals in all months except March and April at the rate of 1.2% of MSB daily, regardless of balance level at or above zero (no ratchets); plus 3.8% of MSB daily on an interruptible basis.
Interruptible withdrawal period from March 1 through April 30 at the rate of 5% of MSB daily.
Receipt and Delivery points shall be Dawn (Facilities)
Cycling Charge:
After the first storage cycle each year (to be reset every April 1), injections into storage and withdrawals from storage will each be at a rate of $0.025 CDN/GJ.
The first storage cycle is complete when the cumulative quantity of all injections and all withdrawals equals two (2) times the contracted MSB. "Maximum Storage Balance" shall mean the maximum quantity of storage space available for shipper's utilization.
No commodity charge and 0% fuel on receipts and deliveries, with the exception of the cycling charge described above.
All terms and conditions set out in the
Peak Storage Contract will apply and can be viewed
here.
Submitting Bids and Awarding Service
All bids are due on or before 11:30 am Eastern Standard Time / 10:30 am Central Standard Time on January 25, 2012. Union Gas expects to award capacity on or before 2:00 pm Eastern Standard Time / 1:00 pm Central Standard Time on January 25, 2012.
Please provide your binding bid under the above terms and conditions by signing and returning the Peak Storage Bid Form indicating the price ($US/MMBtu/year of MSB), Maximum Storage Balance desired and Term.
Union Gas reserves the right to make acceptance of any binding bid conditional upon satisfaction or waiver of conditions precedent set out in Section 3.01 of the Peak 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 Gas reserves the right to reject any and all bids at its sole discretion. Without limiting the foregoing, Union Gas may, but is not required to, reject any bids which do not conform to the Open Season, or are otherwise deficient in any respect.
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