How ETEX Works
ETEX acts as a facilitator bringing buyer and sellers of transport together. Use of the platform is not intended to circumvent or change the current NGTL assignment process. A full outline of how the platform operates is available under in the tab “User Agreements” in the document titled Services.
The ETEX platform facilitates a transaction between a buyer and seller. A transaction on the ETEX platform works in conjunction with the NGTL assignment process. As such, all counter-parties active on the ETEX platform, must have all the necessary and required documentation established with NGTL prior to a bid or offer being posted.
All bid and offer prices on ETEX will be based on B rate tolls for FT-R and Z rate tolls FT-D for each specific location–100% toll – regardless of the contract type the seller holds. For reference, the B and Z Rate toll will be provided on the Market screen. Every bid and offer will place a percentage which will be a discount, premium or equal to the B or Z Rate toll.
Buyers and sellers can choose to post any rate by changing the Bid % or Offer %. As the % is changed, the new toll rate will be calculated and displayed before posting on the live Market screen. All parties are required to provide specific information in order to post a bid or offer: Volume, Price as a %, Term and Location
Buyer and seller choose Meter Station/Strip combination they wish to post on.
Every meter station has a choice between recallable or non recallable with each having associated Strips
For example: Meter Station 1417 Cold Lake Border (NE) Recallable will have a choice of multiple Strips.
Meter Station 1417 Cold Lake Border (NE) will have the same Strips available.
Sellers have the option to post a 10 digit Contract Number associated with the path they are offering and are required to post the corresponding Contract Type. Contract Type is confidential to seller and ETEX. It is required for internal ETEX use and calculations. Contract Type will be made available to buyer after the transaction is completed. Seller is not allowed to change Contract Type after a transaction is entered into on the platform.
- Buyer and seller completes a transaction on the ETEX platform.
- NGTL is contacted by seller to initiate an assignment through an online portal.
- Seller initiates the first assignment of a three assignment process (outlined on ETEX Platform page). To maintain confidentiality, the onscreen transaction results in two 2 transactions: seller (Y) sells to ETEX (Z), ETEX sells to buyer (X). The two transactions create three assignments.
- NGTL evaluates all three assignment requests and determines whether the assignment will be authorized.
- NGTL may request additional credit be posted.
- NGTL provides response via same online portal.
- Parties X,Y,Z accept their respective assignment requests as they come.
- NGTL authorizes assignment.
- The exchange of the physical transportation has been completed.
NOTE
- After NGTL authorizes the assignments, party X will be invoiced by NGTL for the path during the assignment period and party Y resumes payment to NGTL after the assignment expires.
- Party X and Y may have transacted at at different rate than Y is currently paying NGTL. If that occurs, a completion payment between X and Y will be owing. Customer accounts with ETEX will be credited and debited accordingly.
- Invoicing will occur on approximately the 15th day following the month of the transaction. Invoices will include the total premium and discount for all transactions completed the prior month, broker fees for all transactions completed in the prior month and subscription related to the prior month.
- Payments of invoices to be paid approximately on the 25th day following last full month.
- ETEX credit policy must be met in a timely manner for a transaction to be completed.
- ETEX does not ever hold a transport position except to facilitate the onscreen transaction between seller and buyer. Transport reverts back to assignor at end of assignment term.
Seller does not reveal to other market participants which type of transport is being posted. Buyer only finds out when a transaction has been completed. The ETEX uses Contract Type information for calculations of payments owing.
There can be instances when a buyer is willing to buy below 100% tolls (B or Z rate tolls), for example 96% and expects a payment from the seller (because it is a discount to tolls) BUT if the seller holds 95% tolls (A or Y transport) the buyer will be obligated to pay the seller a premium of 1%. Similarly, if a seller holds 105% tolls (C transport), the buyer may be expecting to pay a premium if he bids 101% but will end up receiving a discount of 4%.
If a buyer wishes to transfer a path within a segment or delivery area after they acquire the transport path on the ETEX platform, it will be the buyers responsibility to be aware of NGTL restrictions associated with the path they have purchased and changes in tolls associated with the transfer. Neither the seller nor ETEX makes any assertions as to the transferability of any paths except if a path is not transferrable due it being in its primary term(as per NGTL policies). Seller must notify ETEX if a posted path is in its primary term so ETEX can notify buyers as soon as possible.
In the Detailed Reports section, the client will see the results of various calculations being performed on the platform. Some of the calculations will differ for FTR and FTD.
Transaction Value is used to calculate the broker fees associated with the transaction
FTR – Monthly Contract Quantity X Transaction Price X # of Months
FTD- Daily Contract Quantity X Transaction Price X # of Days
Premium/Discount is broken into two component for ease of reconciliation and is used to calculate the completion payment associated with the transaction
The first Premium/Discount column
Transaction Price – B(Z) Rate
The second Premium/Discount column
B(Z) Rate – Contract Rate
Completion payment is the payment owed or owing to a client for a specific trade. This payment calculation is intended to help with reconciliation with TCPL invoices. The calculation differs for FTR and FTD. FTD is represented at $/GJ/d for the market but displayed as $/GJ/Month for the TCPL invoice. The premium/discount rate needs to be converted back to monthly rate.
FTR -$/e3m3/Month
(Prem/Discount 1 + Prem/Discount 2) x Volume x # of Months
FTD-$/GJ/Month
(Prem/Discount 1 + Prem/Discount 2)x365/12 x Volume x # of Months
