Union Gas last week began a binding open season for high-deliverability storage and short-notice balancing services at its Dawn Hub storage facility effective November 2010.
Union Gas, a Spectra Energy subsidiary, is seeking customer commitments to support the construction of up to 230,000 gigajoules/d of new incremental storage deliverability at the Dawn Hub. Services include high-deliverability storage, which offers shippers a five- or 10-day service with firm year-round injections and withdrawals and no storage inventory level requirements (no ratchets); upstream pipeline balancing service; downstream pipeline balancing, which gives shippers the ability to schedule deliveries at Parkway or Kirkwall; and F24-S, an enhancement to existing and new storage contracts, which provides firm all-day access to existing storage injection and withdrawal rights on 13 nomination windows.
Union Gas currently owns and operates the Dawn storage facility, the largest underground natural gas storage facility in Canada. Last year Union Gas made two storage acquisition deals: a 1 Bcf natural gas storage pool located near Sarnia, ON, from Midway Petroleum Co. and a 75% interest in a 3 Bcf storage pool owned by Tribute Resources located in Huron County, ON (see NGI, Dec. 3, 2007). The company said it was able to make those deals and to offer the high-deliverability storage, balancing and power services at Dawn Hub thanks to a storage forbearance decision issued by the Ontario Energy Board in 2006.
Union Gas is an integrated natural gas storage, transmission and distribution company, which serves approximately 1.3 million residential, commercial and industrial customers in 400 communities throughout Ontario. The company's storage and transportation assets move natural gas from all major North American supply basins to central Canadian and northeastern U.S. markets.
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