FT-D Expansion Capacity - EGAT Open Season

NGTL Empress and McNeill Borders FT-D Expansion Capacity Open Season

July 5, 2024 – August 8, 2024

NGTL GP Ltd., as general partner on behalf of NGTL Limited Partnership (“NGTL”) is holding a binding Expansion Capacity Open Season for Firm Transportation – Delivery Group 1 Service (FT-D1) at the Empress and McNeill Borders ("Open Season").

Estimated Available Expansion Capacity and Targeted Service Commencement:

Estimated Expansion Capacity:                       up to 160,000 GJ/day

Targeted Service Commencement Date:    April 1, 2027

The Service Commencement Date for Expansion Capacity will be based on determination of expansion facility readiness.

The Expansion Capacity offered through this Open Season can be used to accommodate Firm Transportation - Delivery service at the Empress and McNeill Group 1 Delivery Points, and may be able to accommodate certain Group 2 and Group 3 Delivery Points (“Common Capacity”). For a map of areas considered Common Capacity, see here.

This Open Season will allow for the potential relocation of awarded capacity to a Group 2 or Group 3 Delivery Point if the location is considered Common Capacity. Prospective customers may submit a request for consideration to relocate awarded capacity from Empress or McNeill Borders to a qualifying intra‑Alberta Group 2 or Group 3 Delivery Point by completing the Relocation Request Form. Further information on relocation can be found in the “Relocation Requests” section below.

Bidding and Allocation Procedure for the Open Season:

The Open Season will commence on Friday, July 5, 2024 at 4:00pm Mountain Time (“MT”).

Bids are due Thursday, August 8, 2024, before 10:00 a.m. 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 seeking to bid for this available Expansion Capacity must complete the FT‑D Existing Capacity / FT-D Expansion Capacity Open Season Bid Form (page 30 of Appendix A).

A completed and executed FT‑D Existing Capacity / FT‑D Expansion Capacity Open Season Bid Form must be sent by email to ab_ft_openseason@tcenergy.com prior to the deadline shown above.

As per Appendix A to the NGTL Tariff, NGTL will evaluate all bids solely based on the requested term length specified in the FT‑D Existing Capacity / FT‑D Expansion Capacity Open Season Bid Form and the D1 toll applicable at Empress and McNeill Borders. NGTL will only consider a contract term of 15 years or more to align with other recent Expansion Capacity contract term lengths (consisting of minimum 5 years Primary Term with the remaining term to be Secondary Term). Primary Term length for relocations is subject to the considerations set out in the “Relocation Requests” section below. The requested Service Termination Date entered in the FT‑D Existing Capacity / FT‑D Expansion Capacity Open Season Bid Form shall be the last Day in a month.

Prospective customers may submit more than one bid. 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 to the NGTL Tariff.

Prospective customers will be required to meet the deposit requirement outlined in Appendix A to the NGTL Tariff.

Relocation Requests

Prospective customers interested in a relocation of awarded Expansion Capacity must submit a request for pre-assessment prior to July 19, 2024 by email to ab_ft_openseason@tcenergy.com. The pre‑assessment is to determine whether the requested location is considered Common Capacity at the time of submission. The pre-assessment is not a guarantee or approval of a potential relocation request of awarded Expansion Capacity and relocation requests will be subject to reassessment after Expansion Capacity has been awarded.

If a prospective customer wishes to be considered for a request to relocate awarded Expansion Capacity from Empress or McNeill Borders to a Group 2 or Group 3 Delivery Point at the time of bidding, NGTL’s Relocation Request Form must be completed and submitted with their FT‑D Expansion Capacity Open Season Bid Form. A separate Relocation Request Form is required for each applicable FT‑D Expansion Capacity Open Season Bid Form.

If a successful bid with a relocation request that was pre-assessed and qualified for relocation to an intra Alberta Group 2 or Group 3 Delivery Point, but the relocation can no longer be accommodated at that Delivery Point when  reassessed at the time of award due to changed circumstances, the bidder will have two business days option to either rescind their bid or be awarded FT-D1 capacity at Empress or McNeill Borders.

Customers that are awarded Expansion Capacity and request a relocation (1) that was not pre-assessed and determined to qualify for relocation; and (2) is not approved for relocation, for any reason, will be issued a FT-D1 Project and Expenditure Authorization (PEA) and Schedule of Service at Empress or McNeill.

 

Awarding Expansion Capacity:

The successful bidders in the Open Season will be required to execute a Project and Expenditure Authorization (“PEA”), a Service Agreement (if required) and a Schedule of Service Rate Schedule FT-D for the awarded Delivery Contract Demand and term. NGTL will provide Notice to successful bidders in accordance with Appendix A to the NGTL Tariff.

NGTL will evaluate any relocation request of successful bidders in the Open Season in accordance with the following:

• NGTL will evaluate relocation requests after Expansion Capacity has been awarded as set out in the “Bidding and Allocation Procedure for the Open Season” section above.
• Primary Term length will be the higher of 5 years or the number of years required to ensure appropriate cost coverage of new facilities as set out in Appendix E.

Upon receipt of the PEA, Service Agreement (if required) and Schedule of Service Rate Schedule FT-D, successful bidders will have 10 Banking Days to return executed documents and to satisfy Financial Assurance requirements. The amount of Financial Assurance that NGTL may request from the successful bidder 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. The amount of Financial Assurance that NGTL may request from the successful bidder with an approved relocation requiring customer specific new facilities or modifications to existing facilities is an amount payable to NGTL under the PEA of the estimated costs and expenses of such customer specific facilities.

Bid Process with Relocation Request Summary:

• Customers that are interested in the relocation of awarded Expansion Capacity must submit a request for pre-assessment prior to Friday July 19, 2024 by email to ab_ft_openseason@tcenergy.com
• NGTL will evaluate the pre-assessment and get back to the customer with results by Wednesday July 31, 2024
• Customers will have until Thursday August 8, 2024 before 10:00 a.m. MT to submit their bids along with any applicable relocation request forms
• NGTL will start assessing bids and notifying customers of award starting Thursday August 8, 2024
• A successful bid with a relocation request that was pre-assessed and qualified for relocation to an intra-Alberta Group 2 or Group 3 Delivery Point qualified for relocation, but the relocation can no longer be accommodated at that Delivery Point when reassessed at the time of award, will have two business days after being advised of the unsuccessful relocation to either rescind their bid or be awarded FT-D1 capacity at Empress or McNeill Borders
• Customers that are awarded Expansion Capacity and request a relocation (1) that was not pre-assessed and determined to qualify for relocation; and (2) is not approved for relocation, for any reason, will be issued a FT-D1 Project and Expenditure Authorization (PEA) and Schedule of Service at Empress or McNeill.
• The deadline to waive conditions on awarded Expansion Capacity is Thursday August 15, 2024
• NGTL anticipates issuing PEAs to successful bidders by Tuesday August 27, 2024

All capitalized terms not defined herein have the meaning ascribed to them in the NGTL Tariff.

For more information, please contact your Marketing Representative.