Information on the delay at King's North

As you know, Gaz Métro undertook a few years ago to move its supply structure from Empress to Dawn, with a view to ensuring security of supply and reducing overall gas supply costs. Of the various steps required for that change, one of the most important is moving the natural gas delivery point for direct purchase customers from Empress to Dawn. As has been announced, that step will be completed on November 1, 2016.

TransCanada’s King’s North construction project is definitely tied in with that move, since it will significantly increase the availability of short-distance transportation capacity for supplying the territory that Gaz Métro serves from Dawn. However, TransCanada announced in August 2016 that its construction work was slightly behind schedule, and that the additional transportation capacity made possible by the King’s North project would not be in service until the end of November 2016. That service start date still stands, based on the progress of work on that project that TransCanada indicated in its latest report to the National Energy Board.

It is important to note that this in no way changes the fact that all direct purchase customers will have to deliver their natural gas to Dawn, rather than Empress, starting November 1, 2016.

  Taking Stock of the Widening Price Differential Between Dawn and Empress

The price of natural gas in Western Canada has been rising since the spring, but at a lower pace than anywhere else on the continent and, in particular, at Dawn. The price differential between Empress and Dawn is widening, which has changed – at least temporarily – the cost savings associated with moving the Gaz Métro supply structure from Empress to Dawn.

The following graph shows seasonal changes in the price differential between Empress and Dawn. Historical prices (blue bars) correspond to the average daily spot prices. Prices for future periods (purple bars) correspond to the financial market price as at September 8, 2016.

The average historical differential between Empress and Dawn is approximately $0.85/GJ , which is below the Empress-to-Dawn transportation rate. For winter 2016-2017, the differential has been established at $1.40/GJ while for the year 2016-2017, it was at $1.20/GJ.

These observations may raise some questions, including:
  • What factors could account for a possible increase to the price differential between Dawn and Empress next winter?
  • Is this situation cyclical (short-term) or structural (long-term)?
  • Is the move to Dawn still cost-effective?
  • In the case of Gaz Métro, what could account for the apparent difference between the service rates offered and the posted market rates?
  • Why do some customers feel that their bills have not gone down despite the reduction to supply structure costs?
  Download the answers (PDF)

  How can you increase your business's energy efficiency?

There are various efficient technologies that can help you reduce your energy consumption for heating purposes. Gaz Métro offers financial assistance for the installation of high-efficiency unit heaters ($1,700/unit). These natural gas-powered heaters can attain an efficiency level of over 90% because the combustion products are cooled to the point where the water vapour condenses. Steam-supplied unit heaters cannot provide such efficiency. High-efficiency unit heaters are perfect for heating large spaces such as warehouses and loading docks.
Eligible equipment list (PDF)

Innovation

To achieve ambitious energy efficiency objectives, technological innovation can sometimes be the best option. Gaz Métro also offers financial assistance in this area, to promote the adoption of new technologies, or the innovative use of existing technologies, that offer high potential for energy efficiency. This financial assistance can range up to $100,000. Here are a few projects that have been carried out, or are in progress:
  • Pre-heating the combustion air using solar power
  • Recovering heat from dryers in an industrial laundry facility
  • A new oven control system
  • Sub-metering and individual billing in multi-dwelling buildings
In this program, it is important to demonstrate the potential energy saving and the innovativeness of the technology. In addition, the Natural Gas Technologies Centre (NGTC) can guide you at every step of your project. Don't hesitate to get in touch with us to bring your engineering project to fruition!

Results of the 2016 satisfaction survey

A huge thank-you to all of you who took the time to answer our satisfaction survey last spring. Your satisfaction is always our top priority, and the survey results will enable us to adapt our ways of doing things in order to provide you with service that meets your needs even better, year after year.

Since the Major Industries survey was launched in 2001, we have seen a significant increase in your satisfaction, from 74% to 84% with respect to Gaz Métro overall, and from 77% to 92% with respect to your advisor. That’s nothing to sneeze at!
However, over the past year your satisfaction with both Gaz Métro and your advisor has diminished slightly. We have read and analyzed each of your responses with a view to developing avenues of improvement, so that we may provide you with the best possible service in the coming year.

One of the solutions we have come up with is to create a new “express” blue bulletin. It will be issued four times a year or so, as needed, and will cover current topics such as the new rate case for 2017 which is currently before the Régie. This will enable us to quickly bring you up to date on issues that are important to you.

  Call for interest: purchase of emission units - deadline October 14

In order to cover its needs in connection with the cap-and-trade system for greenhouse gas emission allowances (CATS) while reinjecting funds into Québec, Gaz Métro would like to purchase emission units from its heavy emitter customers who want to dispose of units that exceed their needs, whether they were acquired as part of previous transactions or obtained free from the Québec government. Gaz Métro is therefore issuing a new call for interest to discuss offers that could translate into short-term transactions, where applicable.

For any questions or to indicate your interest, contact Hugo Levert, Carbon Market Senior Advisor, at 514 598-3186.

Did you know?
On May 19, the Ontario government published the final regulation for the implementation of its own cap-and-trade program. The Ontario program will take effect on January 1, 2017 and will tie in with the Québec-California joint market starting January 1, 2018.
1 This average was calculated over the period from November 2008 to today, leaving out the period of high volatility from January to March 2014.