Document background
The Gas Purchase Agreement is a fundamental commercial contract used in the Canadian energy sector to establish a legally binding relationship between gas sellers and buyers. This document is essential when parties wish to enter into a long-term gas supply arrangement, typically involving significant volumes of natural gas. It covers critical aspects including quantity commitments, delivery specifications, pricing mechanisms, quality standards, and measurement procedures. The agreement must comply with Canadian federal and provincial regulations, including requirements from the Canadian Energy Regulator, provincial energy authorities, and environmental agencies. It's particularly important for ensuring security of supply, managing commercial risks, and establishing clear operational procedures between parties in the gas supply chain.
