Dawn Parkway Firm Transportation Reverse Open Season - CLOSED
Binding Reverse Open Season
Dawn to Parkway Firm Transportation Capacity Turn-back
November 26, 2018
Union Gas Limited (“Union Gas”), an Enbridge company, recently conducted an open season for new M12 transportation service on Union Gas’ Dawn Parkway System. The open season commenced Aug. 29, 2018 and closed on Nov. 16, 2018 (the “Open Season”).
Incremental requests for transportation service on the Dawn Parkway System arising from the Open Season can be satisfied through the expansion of physical facilities on the Dawn Parkway System or through a reduction in the current contractual commitments with existing shippers on the system, such reductions to be effective Nov. 1, 2021 and/or Nov. 1, 2022.
In order to promote the most efficient use of the Dawn Parkway System, while minimizing the overall cost to shippers, Union Gas is conducting a reverse open season (“Reverse Open Season”). Current shippers on the Dawn Parkway System that wish to turn back Dawn to Parkway transportation capacity before the end of the initial term of their contract are invited to bid into this Reverse Open Season.
Your cooperation in completing the attached Binding Reverse Open Season Bid Form (“Bid Form”) will serve to advise Union Gas of your binding commitment to turn back existing contracted transportation capacity.
To be eligible to turn back transportation capacity, Bid Forms must be received prior to 1 p.m. Eastern Time on Nov. 30, 2018. Union Gas will review Bid Forms and acknowledge all Bid Forms received on or before Dec. 3, 2018. If a bid is accepted, with or without conditions, Union Gas will notify the successful bidder accordingly no later than nine months in advance of the turn back date.
Bids will be ranked and accepted according to lowest net present value. For example, a contract with two years remaining on the primary term would be accepted ahead of a similar contract with five years remaining on the term.
Any and all bids will be binding upon the bidder and conditional upon Union Gas executing contracts with other shippers for new capacity on the Dawn Parkway System for service commencing Nov. 1, 2021 and/or Nov. 1, 2022, with all conditions precedent within those contracts being satisfied or waived in accordance with the terms of those contracts.
Shippers who currently have an option to provide notice of termination on their existing transportation contracts by Oct. 31, 2019, and who wish to turn capacity back to Union Gas (in whole or in part) may participate in this Reverse Open Season (preferable), or they may wait and provide notice by Oct. 31, 2019 as per the renewal provisions in their contract.
The Dawn Hub is the largest integrated natural gas storage facility in Canada and one of the largest in North America. The Dawn Hub is fully integrated into the North American supply and transportation system providing shippers with the ability to access competitive, diverse and flexible supply options.