By Matthew Liebenberg
Southwest Booster
A natural gas supply agreement with an independent and privately owned natural gas marketing company created some debate and disagreement among Swift Current council members.
The one-year natural gas supply agreement between the City of Swift Current and Twin Eagle Resource Management Canada LLC was approved during a regular council meeting on Aug. 17, but it was not a unanimous decision.
Mayor Al Bridal and Councillor Tom Christiansen voted against the motion. They expressed concern about moving the contract away from SaskEnergy.
Councillor Christiansen expressed concern about some of the details of the contract agreement, which he felt was slanted a bit more into the favour of the vendor. However, his main issue was the potential consequences of not using SaskEnergy for the sake of a possible savings of $13,000 on the new natural gas supply agreement.
“That money is coming out of essentially the provincial government’s hands,” he said. “At the same time, we’re turning around and asking for a $25 million donation or grant from the provincial government for our pool. I struggle greatly with possibly jeopardizing a big amount of money that we need to build our new pool over $13,000. I think we can save that $13,000 somewhere else.”
Mayor Bridal shared the same concern about how the City’s decision will be viewed by the provincial government at a time when the City is looking for grant funding for a new aquatic facility.
“The people at the province, while it maybe shouldn’t affect their decision, these things do affect people’s positions, because they’re human, and so I am very concerned,” he said. “That money will not be going to SaskEnergy and will not be going to the province. And so, that is a concern.”
Councillor Ryan Switzer felt it made sense for the City to look for an agreement that offers value and he expressed support for the one-year agreement.
“We’re looking at a one-year deal here and if there’s a competitive market available, it’s our responsibility to look at value, reliability, and risk to stakeholders,” he said. “This is a reputable company that we have a lengthy history of doing business with in the past. So, I’m comfortable going forward and rekindling that business relationship.”
He added that this agreement does not mean the City will not have any business relationship anymore with SaskEnergy.
“We’re taking advantage of a lower commodity price while SaskEnergy still remains on board providing the distribution and utilities as well,” he said. “So, we’re not completely going away from the provincial Crown corporation. And I don’t think that we as a council should favor Crown or private suppliers based on potential grants, and I don’t think the province should have that attitude either.”
Councillor Leanne Tuntland-Wiebe expressed appreciation towards City administration for their effort to find some savings.
“I do like the fact that we’ve done business with them before and it has been a good relationship,” she said. “I hear Councillor Christiansen’s concerns. I hear what you’re saying and I agree, but since this is a one-year contract, I think I’m comfortable with going for it for a year and seeing where we go with that.”
Councillor Ryan Plewis also indicated that he understands the concern about the potential impact on a grant application, but he supported the new one-year agreement.
“If this is a norm for municipalities and it’s not just the City of Swift Current who does these sorts of things and municipalities are customers of Twin Eagle or other gas providers, I would be comfortable with this,” he said. “And I do want to say I appreciate the option being brought to us to look at. This is a way to save some funds as well. So, while maybe not hugely substantial, I think every little bit helps.”
City Chief Financial Officer Alicia Laird mentioned that the City previously used the service provided by Twin Eagle Resource Management from 2013 to 2021.
“Twin Eagle would supply the commodity for enrolled accounts, while SaskEnergy would continue delivery, meter reading, billing, maintenance and emergency services,” she explained.
The new agreement will be for the period Nov. 1, 2026 to Oct. 31, 2027. Twin Eagle Resource Management will supply natural gas under the guaranteed rate plan at a fixed commodity price of $2.995 per gigajoule. This price is below SaskEnergy’s posted business commodity rate of $3.20 per gigajoule.
“The agreement would provide price certainty and budget stability for the one-year term, reducing exposure to market volatility,” she said. “SaskEnergy would continue regular utility services, therefore no day-to-day service change is expected. … Final bills will still depend on consumption, delivery and regulatory charges, taxes, municipal payments, and any agreement adjustments. However, the fixed rate supports cost predictability and may reduce commodity costs.”
Laird indicated that the City’s average annual consumption is approximately 65,000 gigajoules.
“It is important to note that this is approximate usage based on past annual billings and is expected to fluctuate,” she said. “However, with the reduced fixed price through this agreement, the minimum estimated annual savings for the City’s natural gas supply is $13,325.”
