Reducing the number of natural gas flares occurring in Saskatchewan is a positive step toward minimizing impacts on the environment.
TransGas is pleased to offer an allowance that enables oil and natural gas producers to use their associated gas in a more environmentally-responsible and cost effective way. Instead of venting or incinerating associated natural gas, producers — after receiving approval — can supply associated gas directly to another oil and gas producer (subject to qualifying circumstances).
Background
According to The SaskEnergy Act, only TransGas can receive natural gas from producers in Saskatchewan. Producers in Saskatchewan are not permitted to deliver natural gas to third parties for consumption. Only SaskEnergy or TransGas may deliver natural gas to consumers in Saskatchewan via pipeline.
The AGCP provides an opportunity for producers and consumers to come together in situations where natural gas would otherwise be flared or vented, allowing for the capture of natural gas in a cost-effective manner. Under certain circumstances, TransGas will permit producers to deliver natural gas to third parties in order to avoid flaring or venting.
Eligibility
An oil and gas producer with an excess of associated natural gas would be eligible to participate in the AGCP if they meet the following criteria:
- Not currently connected to a TransGas receipt point;
- Currently flaring or venting gas, or anticipate flaring or venting due to a newly drilled well; and,
- Have made arrangements with a nearby consumer to use the gas.
The natural gas consumer must be an oilfield operator that has a demand for natural gas for their oilfield facility and is not currently a SaskEnergy delivery customer.
Application
Interested producers are invited to complete the appropriate application form, depending on the volume of gas proposed to be transferred between parties. For interconnects less than or equal to 500 GJ/day, please complete the Streamlined Application Form. Larger interconnects must include more detailed information, and required the completion of the long-form application. A representative of both the producer and consumer must sign the application in order for it to be considered by TransGas.
Please contact our new Customer Connects team to learn more about this opportunity.