Carcetti Capital Corp V.CART.H

Remember Tysagas?

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What I don’t remember is being told that the gas being produced is SO substandard it’s not allowed into the main pipeline. Nor do I remember being told that we’re paying another company to “blend” it for us. A truly bonus-worthy performance buried in today’s MD&A:

Tysagas is currently producing gas from only one of its four licenses, which is the RK license.The produced gas does not meet the standards of the gas quality in the main pipeline – it is wet, low calorie and containing approximately 30% nitrogen. The solution for marketing such gas (i.e. putting it into the main pipeline) was found in 2007 by concluding an agreement with a regional transportation company for gas blending. In accordance with this contract the transportation company blends Tysagas' gas with the gas from the pipeline in the ratio 1:7, and receives a monthly fee for blending paid by Tysagas. With the upgrade of the RK facility (compression and dehydration) the blending ratio is expected to drop from 1:7 to 1:5.