Shipper Account Balancing

Types of Accounts

There are three accounts Shippers have to track transactions at TEP:

  1. Daily Account - Includes all activity into and out of your account for the current day. Any adjustments to your activity within the last 5 days are updated in this account.
  2. Monthly Account - Adjustments to any activities that occurred prior to the last 5 days are updated in this account.
  3. Previous Monthly Account - The previous month's Monthly Account. The balance is moved to your Daily Account and is spread over a period of up to the last 10 days of the month (maximum), after all measurement is finalized and adjustments are complete. This process is referred to as the Roll Through.

Balancing Your Daily Account

* As of November 1, 2021, Obligation Enforcement applies only to Daily Account balances that are outside of the acceptable tolerance range. Please see the Frequently Asked Questions below for additional details. *

Shippers are required to maintain their daily account balance within the acceptable tolerance ranges as set by TransGas. Tolerance ranges may change day-to-day as we make necessary adjustments to best manage our system.  

The balance can increase (pack) by doing things like:

  • transporting gas into Saskatchewan from out of province
  • bringing receipt gas onto the TransGas system from within the province
  • accepting a trade to buy another customer’s gas at TEP
  • drawing gas out of storage

The balance can decrease (draft) by doing things like:

  • transporting gas out of Saskatchewan (exporting)
  • delivering gas off of the TransGas system
  • accepting a trade to sell your gas to another customer at TEP
  • injecting gas into storage

Managing Your Daily Account

Ensuring your daily nominations are accurate and sent to us on time can help keep your account within the acceptable range. There are also reports on MyTransGas that provide:

  • Inventory Balance by Day report provides Daily Balance, Previous Monthly Balance, and the minimum and maximum tolerance range.
  • TEP Trades Daily report includes the current and future trade activity.
  • Shipper Account Balance report provides details of each receipt and delivery location in addition to trades and tolerance ranges. 
  • Roll Through report provides a breakdown of how the Roll Through will be processed into your Daily Inventory account, by day. The Roll Through includes both the Previous Monthly amount and any Prior Period Adjustments (PPA). A Help Document for Roll Through is available.

Shipper Accounts

Customers with transportation or storage service, or NIT to TEP Service, will also hold a valid TransGas Energy Pool (TEP) account. Your TEP account (Shipper Imbalance Account) will track all gas that moves in and out of TEP.

If you have questions about balancing your shipper account or would like to discuss your natural gas transportation and storage portfolio, please contact your Key Account Manager.

Frequently Asked Questions

What happens if a Shipper's Daily Account is out of balance?

If a Shipper’s Daily Account balance is outside the acceptable tolerance range, and timely action is not made to get back into tolerance, the Shipper will then be subject to Obligation Enforcement.

TransGas will contact Shippers via phone to provide notice that their Daily Account is out of tolerance. Shippers must return to the acceptable tolerance range within the next gas day. TransGas will provide an email confirmation of the notification.

What is the acceptable tolerance range?

The acceptable tolerance range is set by TransGas and may change daily. If, and when, a change occurs, it will be communicated via email to Shippers and updated on MyTransGas.

What happens if a Shipper does not get in tolerance within the next gas day?

If TransGas directs a Shipper to return to the acceptable tolerance range, and the Shipper’s Daily Account is still out of tolerance the next gas day, TransGas will move to Obligation Enforcement. TransGas will notify the Shipper, via email, of the mechanism selected to return their account to tolerance. 

What is Obligation Enforcement?

If a Shipper’s Daily Account balance is outside the acceptable tolerance range, and timely action is not made to get back into tolerance, the Shipper will then be subject to Obligation Enforcement. TransGas has the right to intervene to ensure the account is balanced in a timely manner. Effective Obligation Enforcement for account balancing is critical to safeguard the system and provide fairness to all TransGas customers.

How will TransGas administer Obligation Enforcement?

There are four Obligation Enforcement mechanisms available for TransGas to bring a Shipper’s account back within the defined tolerance range. Obligation Enforcement will apply only to Daily Account balances.    

Obligation Enforcement mechanisms include:

  1. Adjusting the Shipper’s current day nominations and acquiring more gas to be added into the Shipper’s Imbalance Account, or removing gas from their Imbalance Account, as the case may be;
  2. Cancelling all, or a portion of any, title transfer(s) from the Shipper’s Imbalance Account at TEP prior to the end of the next day; 
  3. Settling the difference in quantity by purchasing or selling gas to bring the Shipper’s account back into tolerance; and/or
  4. Restricting flows at points of receipt and delivery.

TransGas reserves the right to use any and all of the four mechanisms stated above. It is anticipated that mechanism number three — purchasing or selling gas on behalf of a Shipper — will be the most effective and most frequently utilized.
 

What happens if TransGas purchases or sells gas on behalf of a Shipper as part of Obligation Enforcement?

In the event that mechanism number three is selected, the Shipper will be notified of the amount of gas that will be purchased or sold to bring their Daily Account into balance. The purchase or sale will be done through a trade at TEP to/from TransGas’ TEP account. No action will be required from the Shipper to complete the trade. 

Is there a charge to the Shipper in the event that gas is purchased or sold on their behalf?

In the event that gas is purchased or sold on behalf of a Shipper for the purposes of account balancing under Obligation Enforcement, the related credit or debit will be split out on a future TransGas invoice.   

The cost to purchase gas on behalf of a Shipper will be calculated as follows:
Cost of actual gas + incremental transport cost + inventory management fee of $1.00 /GJ

The credit to sell gas on behalf of a Shipper will be calculated as follows:
Credit of actual gas cost - incremental transport cost - inventory management fee of $1.00 /GJ

One lump sum will be a debit/credit combining the cost of gas and transportation. The second lump sum will be the Inventory Management Fee. The gas cost/price will be subject to the market at the time of transaction.

Will notifications or actions be taken over weekends and on holidays?

TransGas anticipates that the majority of Obligation Enforcement action will occur during business days. However, Shippers are expected to maintain Daily Balances within their acceptable tolerance ranges on weekends and holidays. TransGas reserves the right to enforce balances any day of the week.

What if a Shipper has concerns about TransGas measurement and inaccurate Daily Account information?

In the event that a Shipper experiences metering issues and is unable to accurately manage their Daily Account, TransGas will work with the Shipper on a discretionary case-by-case basis. Shippers are expected to discuss any issues with their Key Account Manager. Once measurement issues are corrected, Shippers are expected to return to balance.