Union Gas Limited

Expression of Interest for Leamington Expansion Project - Closed

To serve a growing demand for natural gas in the Leamington and Kingsville area, Union Gas is proposing to build a new 12-inch diameter pipeline from the existing Union Gas Comber Station located on Townline Road just south of County Road 46 to an existing Union Gas station located along County Road 14. View PDF map of the proposed facilities.

The "Leamington Expansion Project" will provide additional capacity to serve an equivalent of 509 acres of greenhouses in the Leamington and Kingsville area.

Union Gas is pleased to announce a binding expression of interest for Firm and Interruptible distribution service on the proposed new pipeline, beginning as early as November 2013.

Development of this project is contingent on sufficient market support and approval of the project by the Ontario Energy Board (OEB).

Proposed Services:

Capacity would be available for the following three services, depending on market support:

1. Firm distribution service (265 New Acres) to greenhouses in Leamington and Kingsville area
2. Interruptible distribution service (141 New Acres) to greenhouses in Leamington and Kingsville area
3. Conversion of customers from Interruptible distribution service to Firm distribution service (103 Existing Acres) for greenhouses in Leamington and Kingsville area

This offering does not include the individual customer specific costs that are required to serve specific customers such as customer station costs, customer service lateral cost and extensions. This offering is only for the facilities shown on the PDF map of the proposed facilities.

This Open Season closed 12:00 p.m. EDT on July 27, 2012. Completed Expression of Interest Bid Form must be returned on or before 12 p.m. EDT on July 27, 2012

• Service Description and Details: Term: As this expansion project requires a significant capital investment and is being constructed during a period of changing gas supply dynamics, the term of these agreements is to be a minimum of one year contractual commitments and or upfront payment for capacity.  The facilities, rates and services included in this binding Expression of Interest will be subject to OEB approval.
• Submitting a Binding Expression of interest:  If you wish to participate in the Leamington Expansion Project, please complete, sign and return the Expression of Interest Bid Form (pdf) via email or fax to: Attention: Jeff Blunt or John Squazzin, Email: llajoie@uniongas.com, Fax: (613) 634-4541

Expression of Interest Process:

This binding Expression of Interest is being offered to assist Union Gas with determining facility design requirements to meet market needs.  Union Gas will acknowledge customers bid in writing or e-mail on or before 4 p.m. EDT on July 31, 2012.  Union Gas in its sole discretion reserves the right to reject any and all proposals received.

• The returned forms will be time stamped by the date on the fax or e-mail date.
• Union will evaluate awarding of capacity on a first come first serve basis and when capacity is required. Earliest start date is November 1, 2013 and the term the customer is willing to commit to for the service.
• Successful bidders will be expected to execute a Union Gas Distribution Contract within two years of Union Gas receiving OEB approval to build the facility. The bidders will also submit an irrevocable letter of credit or cash payment by the end of August 30, 2012. Once a contract has been executed, the letter of credit will be returned.
• If one of the three services mentioned above is sold out, and capacity is still available for the other services, Union Gas reserves the right to contact the next customer in line based on the received faxed date and time to offer this customer one of the unsold services.
• Any suggested Conditions Precedent that the Customer proposes should be clearly articulated and attached to the bid form and will be considered during the capacity allocation process.  Successful participants in the Expression of Interest will be expected to submit a letter of credit or make cash payment by August 30, 2012. 
• To discuss the Letter of Credit in more detail, contact your Account Manager or Jeff Blunt or John Squazzin.
• Union Gas anticipates allocating capacity to successful bidders and executing the associated contracts no later than August 30, 2012.

If you have any questions about the Leamington Expansion Project, please contact: Jeff Blunt, Union Gas Account Manager, (519) 436-5298, jblunt@uniongas.com or John Squazzin, Union Gas Account Manager, (519) 436-5478, jsquazzi@uniongas.com