United Kingdom-LEEDS: Gas Shrinkage Contract

Type of document: Contract award
Country: United Kingdom
Publication Ref: (2023/S 000-024291/EN)
Nature of contract: Supply contract
Procedure: Award of a contract without prior publication
Type of bid required: Not applicable

Contract award notice
Supplies

Section I: Contracting entity
I.1) Name and addresses
Official name: NORTHERN GAS NETWORKS LIMITED
National registration number: 05167070
Postal address: 1100 Century Way Thorpe Park
Town: LEEDS
Postal code: LS158TU
Country: United Kingdom
Contact Person: Andrew Christophers
Telephone: +44 7510367358
Email: achristophers@northerngas.co.uk
Internet address(es):
Main address:

I.3)Communication
I.6) Main activity:
Production, transport and distribution of gas and heat

Section II: Object
II.1) Scope of the procurement
II.1.1) Title: Gas Shrinkage Contract
II.1.2) Main CPV code: 09120000
II.1.3) Type of contract : Supplies
II.1.4) Short Description:
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).
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.
The anticipated requirement is for 27,000 therms per annum

II.1.6) Information about lots
The contract is divided into lots: no
II.2) Description II.2.3) Place of performance
Nuts code:
II.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).
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.
The anticipated requirement is for 27,000 therms per annum

II.2.11) Information about options
Options: no
II.2.13) Information about European Union funds
The procurement is related to a project and/or programme financed by European Union funds:no

Section IV: Procedure
IV.1) Description
IV.1.1) Type of procedure:
Award of a contract without prior publication of a call for competition in the Official Journal of the European Union in the cases listed below
IV.1.3) Information about a framework agreement or a dynamic purchasing system
IV.1.8) Information about the Government Procurement Agreement(GPA)
The procurement is covered by the Government Procurement Agreement:no
IV.2) Administrative information
IV.2.1) Previous publication concerning this procedure
Notice number in the OJ S:2023/S 000-022880

Section V: Award of contract
A contract/lot is awarded: yes
V.2) Award of contract
V.2.1) Date of conclusion of the contract:2023-01-01

Section VI: Complementary information
VI.4) Procedures for review
VI.4.1) Review body
Official name: Northern Gas Networks Ltd
Town: Leeds
Country: United Kingdom

VI.5) Date of dispatch of this notice:2023-08-18

Justification for the award of the contract without prior publication of a call for competition in the Official Journal of the European Union

1.Justification for the choice of the negotiated procedure without prior publication of a call for competition in accordance with
Article 50 of Directive 2014/25/EU
Procurement of supplies quoted and purchased on a commodity market

3.Explanation
Please explain in a clear and comprehensive manner why the award of the contract without prior publication in the Official Journal of the European Union
is lawful, by stating the relevant facts and, as appropriate, the conclusions of law in accordance with the directive:
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). 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. This contract is to fulfill this obligation and complies 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;