M16 Transportation

Looking to develop and market a storage facility inside Union Gas’ franchise area?

This bi-directional transportation service provides third party, natural gas storage pool operators with transport between their storage pool and Union Gas' Dawn Hub. The transport service allows the storage operator to offer their customers Dawn based storage services.

The service is contingent on the storage operator building facilities to connect to Union Gas' pipeline network of distribution, transmission or storage pipelines and typically relies, at least partially, on displacement to effectuate service.

The service is available on a firm or interruptible basis, subject to system capacity and local market size or requirements at the point of interconnection. Firm service may require system upgrades which the shipper is responsible for via an "aid to construct" payment.

Given the unique nature of each storage pool and the options for connection to Union Gas' system, each M16 contract is unique in regards to the specifics of pressure, flow rates, costs to connect and specific facilities required. Potential M16 shippers are encouraged to contact Union Gas to discuss their options, given their specific project.


Service Highlights

  • Provides transportation between the storage location and the Dawn Hub
  • Available as a firm or interruptible service
    • Firm service available only on nominations made on the Timely NAESB nomination cycle
    • Right to increase nomination on an interruptible transport (IT) basis on subsequent nomination cycles
  • Overrun and IT service available (subject to priority of service)
  • Shippers pay a monthly connection charge, a demand charge (for any firm portion of service), commodity and/or fuel charges based on transport direction and usage level

Receipt and Delivery Points

  • Dawn, Dawn (TransCanada)

Pricing and Fuel

  • Regulated rate service as per M16 rate schedule
  • Demand charge for firm contract demand is different for "east of Dawn" or "west of Dawn".  East of Dawn applies if Union Gas' Dawn-Parkway system is required to provide the M16 service
  • All values listed as Canadian currency
  • Regulated variable charges, based on direction of transport as per M16 rate schedule
  • Shippers can make a one time decision, at the time of contracting, to provide Union supplied fuel (USF) or customer supplied fuel (CSF)
    • CSF is not subject to true up. USF is subject to intra-period WACOG adjustments


Contract Term

  • From five to 20 years

Service Eligibility

  • Available to any shipper with an interruptible hub contract
  • Sold via direct negotiations between Union Gas and shipper.  Potential shippers should contact their Union Gas account manager or the director of business development to initiate discussions
  • Maximum credit requirement - 12 months demand charge plus initial credit to cover any “aid to construct costs”

Complementary Services

  • Balancing service – basic M16 service requires the shipper to hold a standard interruptible hub contract. The standard M16 contract uses the basic hub contract park and loan service to provide the balancing between the nominated flow and the actual flow to or from the pool in any day.  Union Gas has an optional, unregulated M16 balancing service available that will provide more flexibility at a similar cost.
  • F24-T - upgrades M16 service to firm all day. Provides access to 13 nomination cycles
  • Union Gas storage - provides the option for additional balancing and supplemental flexibility to complement the shipper’s own storage facility.
  • M12 and C1 transportation services – if the shipper wants the ability to move gas between Dawn and Union Gas' downstream or upstream interconnects, M12 or C1 transportation would complement their own storage and the M16 service

How to Request Service

  • Please contact your account manager or the director of business development to initiate a review of your connection and parameter options


Regulatory Notes

  • The M16 Service was subject to a generic proceeding to review the cost structure of the rate and access issues. Potential shippers are encouraged to review the EB-2004-0542 proceeding
  • M16 service has also been the subject of the Ontario Energy Board's proposed storage and transportation access rule EB-2008-0052 and potential shippers should also review that proceeding
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