Gas Shrinkage Contract

Description

Northern Gas Networks is required to purchase gas which is used in connection with the operation of, or which is un accounted for from its gas transportation system in accordance with the Uniform Network Code (UNC). Under UNC rules, shrinkage gas is dealt with on a daily basis with NGN being required to acquire gas to meet its daily shrinkage gas requirement. Shrinkage gas comprises; Own Use Gas - Gas used by NGN in connection wit the operation of its network including gas used in running compressors, gas used for preheating and vented gas; Unaccounted for gas - Gas which is lost or otherwise not accounted for as off taken from its network including gas lost or unaccounted for by reason of unidentified theft and leakage. This contract provides NGN with the facility for the procurement of its shrinkage requirement and an Agent to ensure that the executed trades are nominated under its shrinkage gas account. Lot 1: NGN is required to purchase gas which is used in connection with the operation of, or which is un accounted for from its gas transportation system in accordance with the Uniform Network Code (UNC). This contract provides NGN with the facility for the procurement of its shrinkage requirement and an Agent to ensure that the executed trades are nominated under its shrinkage gas account. Cost to supplier - Management fee of 0.60pp/therm plus 0.5% daily purchase fee.