Award

Gas Shrinkage Contract

  • NORTHERN GAS NETWORKS LIMITED

F15: Voluntary ex ante transparency notice

Notice identifier: 2025/S 000-003806

Procurement identifier (OCID): ocds-h6vhtk-04dbd4

Published 5 February 2025, 12:42pm



Section one: Contracting authority/entity

one.1) Name and addresses

NORTHERN GAS NETWORKS LIMITED

1100 Century Way

LEEDS

LS158TU

Contact

Harriet Wilkes

Email

hwilkes@northerngas.co.uk

Telephone

+44 7813523683

Country

United Kingdom

Region code

UKE42 - Leeds

Companies House

5167070

Internet address(es)

Main address

www.northerngasnetworks.co.uk

one.6) Main activity

Production, transport and distribution of gas and heat


Section two: Object

two.1) Scope of the procurement

two.1.1) Title

Gas Shrinkage Contract

two.1.2) Main CPV code

  • 09120000 - Gaseous fuels

two.1.3) Type of contract

Supplies

two.1.4) Short 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.

two.1.6) Information about lots

This contract is divided into lots: No

two.2) Description

two.2.3) Place of performance

NUTS codes
  • UKC - North East (England)
  • UKD - North West (England)
  • UKE - Yorkshire and the Humber

two.2.4) Description of the procurement

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.

two.2.11) Information about options

Options: No


Section four. Procedure

four.1) Description

four.1.1) Type of procedure

Negotiated without a prior call for competition

  • Procurement of supplies quoted and purchased on a commodity market

Explanation:

This contract relates to the purchase of Gas on the UK commodity market to cover NGN's gas shrinkage requirement relative to its obligations under the Uniform Network Code. It is in accordance with Regulation 50 (1) Utilities may use the negotiated procedure without prior call for competition in the following cases (g) for supplies quoted and purchased on a commodity market.

four.1.8) Information about the Government Procurement Agreement (GPA)

The procurement is covered by the Government Procurement Agreement: No


Section five. Award of contract/concession

A contract/lot is awarded: Yes

five.2) Award of contract/concession

five.2.1) Date of conclusion of the contract

5 February 2025

five.2.2) Information about tenders

The contract has been awarded to a group of economic operators: No

five.2.3) Name and address of the contractor/concessionaire

Engie Gas Limited

Leeds

Country

United Kingdom

NUTS code
  • UKE - Yorkshire and the Humber
Companies House

3814495

The contractor/concessionaire is an SME

No


Section six. Complementary information

six.4) Procedures for review

six.4.1) Review body

Northern Gas Networks

Leeds

Country

United Kingdom