2028 NGTL Greater Edmonton Area Service Offering

2028 NGTL Greater Edmonton Area Service Offering (the “Offering”)

NGTL GP Ltd., as general partner on behalf of NGTL Limited Partnership (collectively “NGTL”), is holding a binding offering for Service under Rate Schedule FT-D for delivery of gas to Group 2 Delivery Points (“FT-D2”) or Group 3 Delivery Points (“FT-D3”) and Rate Schedule OS for extraction service (“OS-EXT”) approximately along the corridor highlighted on the map provided below, as a result of new expansion Facilities (“Expansion Service”).

Estimated Expansion Service, Targeted Service Commencement and Term: 

Total estimated Expansion Service: approximately 300,000 GJ/day  

Targeted service commencement date: starting as early as April 1, 2028 

Term: 15 years (consisting of a minimum 5 year Primary Term with the remaining term to be Secondary Term, with the exception of OS-EXT which consists of 15 year Primary Term) 

Commencement of Service will be based on NGTL’s determination of expansion facility readiness. 

How To Participate: 

FT-D3 – Initial Service Offering (“ISO”) 

The ISO is only available for prospective FT-D3 customers. The maximum Expansion Service available in the ISO is approximately 180,000 GJ/day with a targeted service commencement date of April 1, 2028. The ISO will commence on December 2, 2024 at 10:00am Mountain Time (“MT”) and close on January 13, 2025 at 10:00am MT (“ISO Closing Date”). 

Prospective FT-D3 customers may participate in the ISO as follows: 

(a) Prospective FT-D3 customers shall submit a completed and executed ISO service offering request form (“ISO Request Form”) which can be accessed through this link. A completed and executed ISO Request Form must be sent by email to ab_ft_openseason@tcenergy.com prior to the ISO Closing Date.

(b) Prospective FT-D3 customers must submit only one ISO Request Form per delivery point. While prospective FT-D3 customers may submit more than one ISO Request Form if more than one delivery point is desired, the total of all requests from a prospective customer, including requests from Affiliates¹, shall not exceed 180,000 GJ/day (the approximate amount of service being offered). Failure to meet this condition will result in all the prospective customer’s ISO Request Forms being rejected. 

(c) All ISO Request Forms submitted are irrevocable and binding. 

(d) Prospective customers must follow and complete all steps of the Deposit Process noted below. 

FTD2, FTD3 and OSEXT General Service Offering (“GSO”) 

The GSO will commence on January 30, 2025 at 10:00am MT and close on February 4, 2025 at 10:00am MT (“Offering Closing”). 

NGTL will communicate the results of the ISO via bulletin (expected to be posted by January 15, 2025) to advise prospective customers of the remaining available Expansion Service (“Remaining Expansion Service”) in the Offering prior to the commencement of the GSO. Any FT-D3 requests that are submitted as part of the GSO will be allocated service along with all other service types participating in the GSO without any preferential treatment. 

Prospective FT-D2, FT-D3 and OS-EXT customers may participate in the GSO as follows: 

(a) Prospective customers shall submit a completed and executed GSO service offering request form (“GSO Request Form”) which can be accessed through this link. A completed and executed GSO Request Form must be sent by email to ab_ft_openseason@tcenergy.com prior to the Offering Closing. 

(b) The following conditions will govern how prospective customers may request service. Failure to meet these conditions will result in all the prospective customer’s GSO Request Forms being rejected: 

(i) Prospective FT-D2 and FT-D3 customers must submit only one GSO Request Form per delivery point. While prospective FT-D2 and FT-D3 customers may submit more than one GSO Request Form if more than one delivery point is desired, the total of all requests from a prospective customer, including requests from Affiliates1, shall not exceed the total Remaining Expansion Service being offered.

(ii) Prospective OS-EXT customers may submit a maximum of two GSO Request Forms for OS-EXT service including requests from Affiliates1. For the purpose of these conditions, a partnership will be considered an Affiliate and part of a customer’s maximum two requests.  

(iii) The OS-EXT requested contract demand must be equal to or greater than 20,000 GJ/day and may not exceed the total Remaining Expansion Service being offered. 

(c) All GSO Request Forms submitted are irrevocable and binding.         

(d) Prospective customers must follow and complete all steps of the Deposit Process noted below. 

November 1, 2028, Targeted Service Commencement Date 

Prospective customers may indicate their preference for a November 1, 2028 targeted service commencement date and the preferred contract demand to commence on such targeted date in the GSO Request Form. NGTL will determine if there are sufficient requests to proceed with the expansion facilities associated with this Offering. If so, NGTL will designate the first 50,000 GJ/day to a targeted service commencement date of April 1, 2028.  Subsequently, NGTL may designate a targeted service commencement date of November 1, 2028, to remaining allocated requests, in part or in full, in its sole discretion. Note that the option to indicate a preference for a November 1, 2028 targeted service commencement date is not available for ISO requests. 

In the event that allocated requests for the Offering with a preferred April 1, 2028 targeted service commencement date are less than 50,000 GJ/day, NGTL will designate a proportionate share of all allocated requests with a preferred targeted service commencement date of November 1, 2028 to April 1, 2028. Further, the maximum Expansion Service available with a targeted service commencement date of April 1, 2028 is approximately 180,000 GJ/day. Accordingly, in the event that the Offering results in more service allocated with a preferred April 1, 2028 targeted service commencement date than can be accommodated, NGTL will move a proportionate share of all allocated requests with a preferred targeted service commencement date of April 1, 2028 to November 1, 2028, to ensure the approximate 180,000 GJ/day available for April 1, 2028 is not exceeded. 

Offering Allocation Process (“Allocation Process”) 

ISO Allocation Process 

If the aggregate requested contract demand is less than approximately 180,000 GJ/day, NGTL will allocate the requested contract demand to all requests. Any Remaining Expansion Service following the ISO will be made available as part of the GSO. 

If the aggregate requested contract demand exceeds 180,000 GJ/day, NGTL will allocate service on a pro rata basis using the requested contract demand of each request (“Pro-Rationing”). If Pro-Rationing results in service to be allocated that is below the minimum contract demand as set out in such ISO Request Form, that request will not be allocated service. Pro-Rationing will repeat until the service available in the ISO is fully allocated or no further requests can be allocated through ProRationing. 

Requests allocated service in the ISO Allocation Process will be subject to conditions noted below in the section “Awarding Expansion Service” and not considered awarded service until such time as a PEA, Service Agreement (if required) and Schedule of Service have been issued to the prospective customer. 

GSO Allocation Process 

Step 1: 

(a) If the aggregate requested contract demand is less than the Remaining Expansion Service offered, NGTL will allocate the requested contract demand to all requests. 

(b) If the aggregate requested contract demand exceeds the Remaining Expansion Service offered, NGTL will determine if the aggregate minimum contract demand of all requests can be met. If the aggregate minimum contract demand of all requests can be met, NGTL will allocate the minimum contract demand to all requests and any remaining service above the minimum contract demand of requests will be redistributed proportionately to all requests that have not been allocated their requested contract demand. 

(c) If the aggregate minimum contract demand of all requests cannot be met, NGTL will allocate service using Pro-rationing. If Pro-Rationing results in service to be allocated that is below the minimum contract demand as set out in such GSO Request Form, that request will not be allocated service. Pro-Rationing will repeat until all service is fully allocated or no further requests can be allocated through Pro-Rationing. 

Step 2: 

In the event that more than one OS-EXT request has been received and allocated service in Step 1, NGTL will undertake the OS-EXT Award Process as outlined below. Any unallocated service following the award of service to the successful OS-EXT customer will be added back into the total service to be allocated to prospective FT-D2 and FT-D3 customers. NGTL will then run Step 1 and Step 3 of the GSO Allocation Process excluding OS-EXT requests to determine the final service allocations for the prospective FT-D2 and FT-D3 customers. 

Step 3: 

If there is unallocated service and unallocated FT-D2 or FT-D3 requests following GSO Pro-Rationing, it will be allocated using a first come, first served basis (“First Come First Served Allocation”), where remaining service is awarded first to the earliest request received whose minimum contract demand can be met, and in chronological order thereafter until no service or no requests remain. In the event multiple requests are received by NGTL between 10:00am and 11:00am MT on January 30, 2025 (the “60 Minute Window”) that can be allocated above their minimum contract demand, a lottery of those requests received in the 60 Minute Window will be used to allocate requests. If there is service remaining following the First Come First Served Allocation that cannot be allocated to any unallocated FT-D2 or FT-D3 requests due to the minimum contract demand specified in the GSO Request Form, NGTL may provide prospective customers with unallocated FT-D2 or FT-D3 requests the opportunity to revise their minimum contract demand to maximize the amount of service awarded in the Offering. 

Requests allocated service in the GSO Allocation Process, including OS-EXT requests, will be subject to conditions noted below in the section “Awarding Expansion Service” and not considered awarded service until such time as a PEA, Service Agreement (if required) and Schedule of Service have been issued to the prospective customer. 

OS-EXT Award Process 

In the event upstreaming would occur, only one OS-EXT request will be awarded in this Offering. If more than one OS-EXT request is allocated service in Step 1 of the GSO Allocation Process, those allocated OS-EXT requests will be allocated using First Come First Served Allocation that only considers OS-EXT requests. In the event multiple OS-EXT requests are received by NGTL in the 60 Minute Window and can be allocated, a lottery of those OS-EXT requests received in the 60 Minute Window will be used to allocate requests. The successful OS-EXT request will be awarded the lesser of either: (a) the total amount of Expansion Service allocated to OS-EXT requests in the initial GSO Allocation Process; or (b) the requested contract demand in the successful requestor’s GSO Request Form. 

Note: Prospective OS-EXT customers may consent to NGTL disclosing their contact information to other interested OS-EXT parties before the Offering Closing to facilitate commercial arrangements between such parties. Please contact your Marketing Representative to discuss further. 

Deposit Process 

Within 2 Banking Days of the ISO Closing Date or Offering Closing (as applicable), prospective customers, except those who are also customers receiving Service, other than Service under Rate Schedule IT-S or Rate Schedule FT-X, shall provide to NGTL for each request form submitted, a deposit equal to the lesser of:  

(i) 2 months demand charges for the requested contract demand set out in the request form, calculated based on the tolls in place when the request form was submitted; or 

(ii) $350,000. 

The deposit, if provided, shall be refunded to unsuccessful requesters, including those requesters whose requests were rejected for failing to comply with the offering conditions set out above, within 5 Banking Days from the date the agreements are executed for all Offering Expansion Service. 

If NGTL awards Expansion Service to a prospective customer, such customer shall: 

(a) execute, within the time period specified by NGTL, the Project and Expenditure Authorization (“PEA”), a Service Agreement (if applicable) and Schedule of Service under Rate Schedule FT-D or Rate Schedule OS (as applicable) for such Expansion Service; 

(b) provide sufficient financial information to demonstrate its creditworthiness, as determined by NGTL in its sole discretion; and 

(c) provide a Financial Assurance to NGTL as required. 

If a deposit has been provided and NGTL awards Expansion Service to a prospective customer, and such customer meets the requirements in (a), (b) and (c) above, the deposit will be refunded within 5 Banking Days from the date the agreements are fully executed and the requirements in (b) and (c), as applicable, are met.  

If a deposit has been provided and NGTL awards Expansion Service to a prospective customer and such customer fails to meet the requirements in (a), (b) and (c) above, the Expansion Service allocated to such prospective customer shall be retracted and such prospective customer will either forfeit the deposit provided to NGTL or if no deposit had been provided in accordance with the Deposit Process, then such prospective customer shall pay NGTL an amount equal to the lesser of: 

(i) 2 months demand charges for the requested contract demand set out in the request form, calculated based on the tolls in place when the request form was submitted; or  

(ii) $350,000. 

Awarding Expansion Service: 

NGTL anticipates providing notice to allocated ISO requesters by January 15, 2025 and allocated GSO requesters by February 7, 2025. The award of service pursuant to an allocated request will be subject to NGTL’s evaluation of facilities required for delivery of service, both customer specific and otherwise, and will require successful requesters to execute a PEA, a Service Agreement (if required) and a Schedule of Service for the awarded service. To the extent a prospective customer’s request for service requires new or modified customer specific facilities and/or further expansion facilities, as determined by NGTL in its sole discretion, NGTL reserves the right to retract the allocation of service prior to the issuance of a PEA, Service Agreement (if required) and Schedule of Service and return any deposits or financial assurances provided. 

Upon receipt of the PEA, Service Agreement (if required) and Schedule of Service, successful requesters will have 5 Banking Days to return executed documents and to satisfy Financial Assurance requirements. The amount of Financial Assurance that NGTL may request from the successful requester will be: 

(a) for customers requiring new customer specific facilities or modifications to existing facilities, an amount payable to NGTL under the PEA of the estimated costs and expenses of such customer specific facilities; or 

(b) if no new customer specific or modified facilities are required, then 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. 

Conditions for Awarding Service 

The total amount of Expansion Service to be awarded in this Offering, and between the April 1, 2028 and November 1, 2028 targeted service commencement dates, will depend on various factors related to the requests received by NGTL including, but not limited to, expected utilization, location and System hydraulics. Prospective customers that participate in this Offering are obligated to accept the Expansion Service awarded by NGTL for the targeted service commencement dates as determined by NGTL, provided it meets the prospective customers’ minimum contract demand noted in either the ISO Request Form or GSO Request Form. If the Offering is either undersubscribed or oversubscribed, NGTL reserves the right, in its sole discretion, to reduce or expand the size of the Offering, cancel the Offering, amend the expansion facility set or offer the Expansion Service for a future targeted service commencement date. 

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

 

An information session to discuss the details of the Offering will be held on December 9, 2024 at 10:00AM MT via Zoom: https://us06web.zoom.us/j/83640563059?pwd=Ddwil07aCBki32IXQ04ZYoab1OCX1f.1 

 

If you have any questions, please contact your Marketing Representative

 

2028 Greater Edmonton Area Service Offering – Overview Map

 

Note

[1]“Affiliate” means any Person that, directly or indirectly: (i) controls a Party; (ii) is controlled by a Party; or (iii) is controlled by the same Person that controls a Party; where “controls” and “controlled by” mean the possession directly, or indirectly through one or more intermediaries, of more than 50% of the outstanding voting stock or voting rights of the company, partnership, or corporation in question, or the power to direct or cause the direction of management policies of, any person, whether through ownership of stock, as a general partner or trustee, by contract or otherwise.