How to Monetize Firm Contracts on the NGTL System

Firm Contract Receipt or Delivery [FTR / FTD] — can be monetized by selling, releasing, or temporarily assigning it to other market participants through secondary markets or digital platforms.

On the NGTL (NOVA Gas Transmission Ltd. Read Full Disclaimer) system in Alberta, this represents a massive opportunity for shippers to improve asset utilization, and generate new revenue streams.

Step-by-Step: How to Monetize Firm Contracts

• Identify Firm Contracts Compare your contracted Maximum Daily Quantity (MDQ) against actual daily flows (in e3m3/day).

  • Review utilization reports in the TC Energy Customer Express portal.

  • Look for chronic gaps caused by production variability, declining wells, or seasonal swings.

  • Hummingbird automates this step with proprietary algorithms that scan your NGTL meters in real time and flag monetization opportunities.

• Evaluate Market Demand Determine where and when capacity is needed most.

  • High-demand areas often include delivery points serving oil sands, power generation, or export interconnects.

  • Seasonal peaks (winter) and locational constraints create strong buyer interest.

  • Use market intelligence or Hummingbird to see real-time demand signals.

• Price the Capacity Competitively Base pricing on location, season, remaining term, and current market conditions.

  • Traditional bilateral deals rely on negotiation and relationships.

  • Modern platforms like Hummingbird provide transparent pricing benchmarks and multiple bids.

• Execute the Transaction

  • Traditional route: Negotiate privately and submit a capacity release/assignment through the NGTL portal.

  • Modern route (Recommended): Post your capacity on a structured marketplace like Hummingbird, negotiate digitally, and complete the deal with automated tools.

  • Finalize via NGTL’s approved processes for permanent assignment or temporary release.

• Track and Optimize Monitor post-trade performance, revenue received, and updated utilization metrics in real time.

Key Benefits of Monetizing Firm Contracts

• Recover costs — Turn a fixed expense into revenue.

• Improve overall asset utilization — Optimize firm contracts that are not in use.

• Increase operational flexibility — Better adapt to production changes and seasonal swings.

• Reduce system-wide inefficiency — Help buyers reduce interruptible charges or curtailment risk.

• Create win-win outcomes — Sellers monetize firm contracts; buyers reduce costs

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Risks to Consider

• Pricing volatility — Market rates fluctuate with seasonal demand and supply dynamics.

• Counterparty risk — Mitigated on regulated platforms through NGTL processes and credit requirements.

• Timing mismatches — Capacity must align with buyer needs (term, points, and season).

• Regulatory compliance — All releases and assignments must follow NGTL’s tariff and CER regulations.

Frequently Asked Questions

Who buys Firm Contracts? Producers, marketers, midstream companies, power generators, and traders who need short- or medium-term firm contracts without signing new long-term contracts.

Is there always demand for Firm Contracts? Demand varies significantly by location, season, and delivery point. High-demand periods (winter) and constrained areas usually see strong interest, while off-peak or low-constraint locations may take longer to monetize.

How much costs reduction I realistically generate? Many shippers recover+15–30% of their transportation costs by actively monetizing firm contract portions, depending on volume, location, and market conditions.

Do I need to give up my primary rights? No. Most transactions involve temporary releases or assignments that allow you to recall capacity if your own production increases.

Ready to start monetizing your Firm Contracts in the secondary market?

Hummingbird by TOTEC is the only purpose-built firm contract transport negotiation marketplace. Post offers, negotiate directly online, close deals faster, and track everything in real time.

→ Request a Demo → Explore the Hummingbird Marketplace → Learn About Transport Optimization

Disclaimer

Hummingbird is an independent digital marketplace operated by TOTEC Solutions Ltd. TOTEC Solutions is not affiliated with, partnered with, or endorsed by NGTL, TC Energy, or any other natural gas pipeline operator.

All information and analysis provided are developed solely by TOTEC based on publicly available data.