July 31, 2019
NGTL is holding a binding Expansion Capacity Open Season (the “Open Season”) for Firm Transportation – Delivery Group 1 Service (FT-D1) at the Alberta-B.C. Border.
The Expansion Capacity available thorugh the Open Season is up to 285,000 GJ/d.
The Expansion Capacity will be offered at the Alberta-B.C. Border in two tranches.
The targeted Service Commencement Date and respective capacity for each tranche are as follows:
Expansion Capacity: Up to 110,000 GJ/day. The targeted Service Commencement
Date for this tranche is November 1, 2022.
Expansion Capacity: Up to 175,000 GJ/day. The targeted Service Commencement
Date for this tranche is November 1, 2023.
Commencement of Service for Expansion Capacity will be based on determination of expansion facility readiness.
Additional Expansion Capacity may be available in the event NGTL receives confirmation of non-renewals or accepts turnback requests as detailed below.
The Open Season will commence on Wednesday, July 31, 2019 at 10:00 a.m. Mountain Time (MT).
Bids are due Monday, August 26, 2019 before 10:00 a.m. Mountain Time (MT).
As outlined in Appendix A to the NGTL Tariff, titled “Terms and Conditions Respecting Access to Transportation Service at Group 1 Delivery Points”, all parties wanting to bid for this available service can do so by completing the Existing Capacity / Expansion Capacity Bid Form (page 23 of Appendix A).
A completed and executed Existing Capacity / Expansion Capacity Bid Form should be sent by email to [email protected] prior to the deadline shown above.
As outlined in Appendix A to the NGTL Tariff, NGTL will evaluate bids solely based on the requested term length, independent of the requested Service Commencement Date. The minimum term for Expansion Capacity is 8 years, however Company approvals to proceed with the Expansion Facilities will be subject to a feasibility evaluation that will include consideration of contract term length of 15 years or more.
Prospective customers should submit bids that specify one of the two above listed Service Commencement Dates for the Expansion Capacity. Prospective customers may submit more than one bid. The aggregate of bid quantities shall not exceed the stated Expansion Capacity associated with the requested Service Commencement Date. All bids are binding; however, prospective customers may submit bids conditional on being awarded capacity in an open season process held by a directly interconnecting pipeline in accordance with the provisions of Appendix A.
In the event a prospective customer is not awarded all or a portion of its bid for Expansion Capacity in the earlier tranche, NGTL will consider the prospective customer's bid, or the remaining portion of it, as a bid for the same term length for the next available Service Commencement Date in the Open Season. By submitting a bid, the prospective customer agrees to this bid allocation.
Successful bidders will be required to meet the deposit requirements outlined in Appendix A.
The successful bidders in the Open Season will be required to execute a Project Expenditure Authorization (“PEA”) and a Schedule of Service Rate Schedule FT-D for the awarded Service Commencement Date, Delivery Contract Demand and term.
NGTL shall notify successful bidders in accordance with Appendix A. Successful bidders for Expansion Capacity will have until Wednesday, September 11, 2019 to return executed documents and to satisfy Financial Assurance requirements. The amount of Financial Assurances that NGTL may request from the prospective shipper is an amount payable to NGTL under the Schedule of Service of 70 days plus one month for each year of term, up to 12 months total.
All capitalized terms not defined herein have the meaning ascribed to them in the NGTL Tariff.
NGTL is soliciting confirmation of non-renewal from any customers currently holding FT-D1 Service at Alberta-B.C. Border eligible for renewal prior to November 1, 2022. Any customers that do not intend to renew their FT-D1 service and wish to submit a confirmation of non-renewal should complete the confirmation of non-renewal form and submit it to [email protected] by the close of the Open Season. Confirmations of non-renewal are binding and irrevocable once submitted.
NGTL is also soliciting turnback requests for any shippers currently holding FT-D1 service at Alberta-B.C. Border that expires after October 31, 2022. Acceptance of any turnback request is at NGTL’s sole discretion. NGTL’s evaluation of turnback requests will include but not be limited to consideration of whether the request reduces the need for expansion facilities; capital and operating cost impacts; and revenue and toll impacts.
Any acceptance of a turnback request will be subject to NGTL proceeding with the expansion facilities, including execution of the PEAs and Schedules of Service by other prospective customers and all necessary company and regulatory approvals.
Customers wishing to submit a turnback request for all or a portion of their FT-D1 service at the Alberta-B.C. Border on or after November 1, 2022 should complete the turnback request form and submit it to [email protected] by the close of the Open Season. Turnback requests are binding and irrevocable once submitted.
Email: [email protected]