Understanding your Union Gas Contract and Rates

Understanding your Union Gas Contract and Rates - Transportation on Union Gas

  • T1/T2 service is a no-notice transportation service. A T1/T2 customer does not need to nominate gas for consumption.
  • Customer delivers to receipt point as outlined T1 Schedule 1 or T2 Schedule 1.
  • Union Gas will permit multiple T1/T2 redelivery points not under common ownership provided the deliveries are managed by a common "fuel manager".
    • Each redelivery point will need to individually meet the 2,500,000 m3 minimum volume requirement for the T1 rate schedule.
    • The sum of the aggregate Firm Daily Contract Demand for all redelivery points must meet the eligibility of 140,870 m3 requirements for T2.
    • The fuel manager will be responsible for providing the necessary required credit to Union to cover the prudential requirements of all of the redelivery points and accepts joint and several liabilities for obligations at each redelivery point.

Storage: (Space & Injection/withdrawal)

  • T1/T2 customers can contract for cost based storage with Union Gas, a third party storage provider or choose not to have storage.
  • If storage space and deliverability (ie. injection and withdrawal) are contracted from Union Gas:
    • The maximum amount of storage space, available at cost based rates is determined using the south storage allocation policy.
    • the maximum level of deliverability available at cost based rates is the greater of Obligated DCQ or firm CD - Obligated DCQ.
  • To the extent customers desire storage space in excess of that determined through the applicable Board-approved formula, they can contract in the market for additional storage services or can request market based supplemental services.
  • Union Gas manages daily differences between receipts and consumption by allocating activity to/from customer's storage account. If customer does not elect to have T1/T2 storage, then customer is responsible for managing the daily difference between receipts and consumption

Upstream Transportation

  • Customer is responsible for delivering gas to Union Gas at their contractual receipt point(s)
  • Customers must also accept an assignment from Union of transportation capacity on upstream pipeline systems.

Special Conditions

Contract Term

  • Minimum of one year

Other Services Available

If you have questions please contact your Union Gas Account Manager.