The AECO Hub™ offers competitive and reliable Firm Storage services. These services may be completely customized by the customer in terms of the amount of reserved space, the injection rate or withdrawal rate required to meet your needs and economics. You may cycle your service as much as your contract and opportunities allow. Contract terms are generally one year or greater.
Two Firm Storage profiles are common at the facility (although alternatives are possible):
- Inventory Profiles — Inventory profiles or ratchets are a cost-effective way for a customer to realize significant savings by allowing your storage contract to approximate actual facility performance curves. Injection and withdrawal rates are set based on the customer’s inventory levels, not on the overall facility inventory level. A “Special 1.5 Cycle Ratchet” has been designed to provide very high deliverability up front and has ratchets that are set in 30 and 60 day steps to provide maximum hedging flexibility.
- Monthly Profile — For those who do not wish to manage an Inventory Profile with ratcheted injection/withdrawal rates, AECO offers the choice of a Monthly Profile where the customer chooses injection and withdrawal rates for each month of the year and as long as the customer’s inventory account is neither full nor empty, these rates remain constant and are not dependent upon inventory levels.
Standard Variable Charges
In addition to negotiated Demand Charges for the selected profile, there are both Commodity and Fuel charges which are charged on the injection and/or withdrawal nominations. The standard variable costs are $0.02/GJ in and $0.02/GJ out as well as 0.75% fuel in and 0.75% fuel out (billed off the daily AECO index… not taken in kind). Details about these charges can be found in the Firm Storage Service Schedule of the Tariff.
Please contact us for a walkthrough at any time.
Why would you want to hold firm storage?
- Seasonal, month to month, and day to month arbitrage opportunities.
- The ‘option’ value of your injection and withdrawal rights.
- Produce efficiently while maximizing sales at peak period prices.
- Reliability and security.
- Efficient utilization of pipeline capacity.
- Operational balancing.
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