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TSP/TSP Name:  6900518-SOUTHERN NATURAL GAS CO. Critical: N
Notice Type Desc (1):  TSP CAP OFFERING Notice Type Desc (2):  TSP CAP OFFERING
Notice Eff Date/Time:  02/10/2017 12:44:38PM Notice End Date/Time:  12/31/2049 9:00:00AM
Post Date:  2/10/2017 12:44:38 PM Notice ID: 700858
Reqrd Rsp:  5 Notice Stat Desc:  INITIATE Prior Notice: 
Subject:  Open Season Announced for Firm Transport
Notice Text:

February 10, 2017

To All Southern Natural Gas Company Shippers

RE: Open Season Announced for Firm Transportation (FT)/Expansion


On February 8, 2017 Southern Natural Gas Company, L.L.C. (“SNG”) in Docket No. CP17-46 filed an application for authorization to expand its system from a proposed interconnection with Transcontinental Gas Pipe Line (“Transco”) near the existing Jonesboro, Georgia interconnection to delivery points on the SNG pipeline system (“SNG Expansion”). Along with the new interconnection with Transco, SNG proposes to build a connecting pipeline and a new compressor station to receive gas from Transco.  This is to advise shippers that, as part of the SNG Expansion, incremental firm transportation capacity will be available on SNG's South Main Line east of SNG's Gwinville, Mississippi compressor station, including deliveries to the South Georgia Lateral. 

This open season is being made to solicit non-binding bids from other parties that may wish to participate in this expansion. The capacity available to be awarded may not be available in the same increments to all locations along SNG's South Main Line, in particular, less capacity will be available to delivery pins east of SNG's Ocmulgee compressor station, and may not be available to particular laterals or delivery pins. For any bids to be awarded, the aggregate total of all such bids must reach a minimum of 2,500 dth/day. In addition, the maximum capacity available east of SNG's Thomaston Compressor Station is limited to approximately 8,000 dth/day and no capacity is available on the SNG North Main Lines.

The incremental firm transportation capacity is expected to become available no earlier than October 1, 2018. All bids for this capacity must have a requested start date coincident with the in-service date of the SNG Expansion facilities. The actual start date shall be subject to receipt of regulatory approvals by SNG and SNG's construction schedule for the SNG Expansion.

 

If there are more bids than there is capacity, SNG will award the capacity from bids received during the open season on the basis of net present value determined with reference to the rate, volume, term and the date the service is to commence. In calculating the net present value, a discounted cash flow factor of 10.24% will be used. Southern will have the right to aggregate bids in a manner that generates the highest net present value to Southern.


The open season will commence as of the date and time this notice is posted and end at 1:00 p.m. CCT on February 27, 2017.

 

SNG will not consider bids with terms of less than fifteen (15) years.

SNG reserves the right not to accept, in a not unduly discriminatory manner among similarly situated bids, any bid that is uneconomical to SNG; that would require the construction of additional facilities other than those required to expand SNG's facilities proposed in the application as part of the SNG Expansion; that would require the construction of facilities which are disproportionate in cost to the quantity bid; that does not meet the requirements of these open season guidelines; that contains unacceptable conditions or contingencies; or that contains a start date outside the in-service date of the SNG Expansion as stated above. SNG will consider construction of meter station facilities or modifications on a reimbursable basis. With the exception of any conditions precedent relating to receipt of regulatory approvals, Shippers must sign a precedent agreement with SNG and have removed all conditions to their bids by a date acceptable to SNG.

SNG reserves the right to not accept bids at less than the maximum tariff rate applicable to this expansion. Seasonal bids for incremental firm capacity will not be considered in this open season. The actual reservation rate to be paid by recourse rate shippers will depend on the ultimate cost and design of the facilities to be included in the SNG Expansion after all the acceptable bids are taken into account. In addition, Shippers shall pay applicable commodity charges, surcharges and fuel, including fuel for deliveries on SNG's system. Only valid requests for service under the terms of SNG's tariff and under the terms of these open season guidelines will be considered. In the precedent agreement Southern will require each shipper to meet certain minimum financial criteria (the “Creditworthiness Test”) in order to proceed with the expansion opportunity. Receipt point shifts for existing packages of capacity from SLNG Elba Island to the new Transco-Fairburn Interconnection will be accepted as part of the open season, even if such packages are seasonal.  
 
Shippers may submit bids to SNG for FT service by completing a standard transportation request form for FT service and faxing it to the attention of Darryl Outlaw at (205) 325-3587 or emailing it to FTServiceRequest@kindermorgan.com.  Please call your account manager if you need an FT Request Form or you can paste the following link in your browser and then click on SNG Service Request. http://pipeportal.kindermorgan.com/PortalUI/CommonForms.aspx?TSP=SNGD

 

On the request form, Shippers should indicate the term (start and end date), quantity (in Dth/d), and delivery points on SNG's system, either existing or proposed, with the corresponding volume being bid. The receipt point will be the proposed new interconnection with Transco.   

Shippers should indicate in their bids the minimum volume of capacity they are willing to take in the event the full contract quantity of the bid is not available or if SNG must prorate the bids. If a bid is submitted in excess of the available capacity and the bids must be prorated, the bid in excess of the available capacity will be prorated as though the bidder bid for the maximum available capacity to be awarded.


SNG will take no longer than ten (10) business days to notify Shippers of bid awards. Shippers that have not executed a precedent agreement with SNG by the close of the open season will be required to do so within ten (10) business days of the award notice.


If you have any questions regarding the Open Season, please contact your Account Manager or Devy Traylor in Business Development at 205-325-3524.

SNG Marketing