Amy Horn

Photographer

What Is A Gas Transportation Agreement

The final stage of the intermediate value chain is gas storage. A gas storage contract is an exchange of money for the right to store natural gas in a storage facility (usually a depleted salt dome tank or water aquifer) for a certain period of time. A gas storage operator also receives money for the provision of gas storage services (balancing, pressure maintenance, etc.). In a state-of-the-art razor model (contraction to meet seasonal demand), natural gas storage should not be underground, but cryogenically stored in large tanks. Both business models include terms and conditions similar to the other service contracts mentioned above (rates, fees, storage obligations, etc.). If the existing consignor agrees to comply with the competing offer, the carrier will provide transport services to the existing consignor after entering into a gas transport contract that includes the terms agreed in the corresponding offer. When negotiating transport and processing contracts, there are many mobile parts of the draft contract, which are (often) processed in parallel by sub-teams. It is important that the concepts and terms used by these sub-teams are consistent in the final agreement executed. In this case, the term “CATS capacity” was used throughout the agreement with respect to, among other things, pricing, emergency service provision and representation rights.

The Court of Appeal advocated an interpretation of the agreement that allowed the terms used to have a uniform meaning and application. This highlights the importance of “connected” designs between sub-teams that deal with nested and interdependent defined terms. For TGTL`s interpretation: There are strong linguistic reasons to believe that “the proposed period of carriage” under Article 4.6(a)(vii) refers to the period between “the date on which the carriage … is proposed to commence” and “the estimated date on which [it] is to be terminated” in accordance with clause 4.6(a)(iv) and (v). This interpretation is consistent with the wording of the clause and clause 4.6 does not refer to any other “proposed carriage time”. Therefore, by focusing in isolation on clause 4.6(a)(vii), the maximum rate means that the rate means the rate that applies at all times during the period covered by the transport and processing agreements with third party shippers (“TPC”). In the context of Annex XIII (which deals with allocation principles), it was clear that reserved capacity refers to capacity actually reserved (or reserved) that is actually reserved (or reserved) from time to time. Historical peaks are not linked to what was actually sent at a given time (or, if different, to the actual reserved capacity) and cannot be relevant to the allocation at issue in Annex XIII. In fact, the use of historical figures would make it impossible to assign “on a basis that is clearly fair and equitable for all CATS fields,” as required by this appendix.

However, for the authors of such agreements and those who manage them on a daily basis, the decision of the Court of Appeal seems to provide useful guidance: the last point I will mention about ATMs is the need to understand the balance. While this may be dealt with in another agreement, it is sometimes included in the GTA. A gas balancing rule is the method of confirming that a manufacturer/shipper`s entry into the pipeline is in accordance with its actual deliveries. Since additional services are almost always charged in such agreements, the producer/shipper will negotiate the payment of fees for the carrier to handle the balance. The timing of these services is also crucial. Calculations can be done anywhere, from hour to month. The more unbalanced a system becomes, the greater the impact on operational efficiency and sustainable cash flows. .

Comments are closed.