December 12, 2017
To All Southern Natural Gas Shippers Re: Award of Firm Transportation Capacity in Open Season
On November 27, 2017, Southern Natural Gas Company, L.L.C. ("Southern”) announced an open season for bids for approximately 5,000 dth/day of short-term firm transportation capacity (“FT”) that is operationally available from January 1, 2018 through April 30, 2018 on the north system of the Southern Natural Gas Company, L.L.C. ("Southern”) pipeline system. This capacity is available from receipt pins as far west as those on Segment 50 which includes Tex Gas/SNG Kosciusko Attala (PIN #609000) and TET/SNG Kosciusko Attala (PIN #49128) and any receipt pins downstream of this location along Southern's north system. This capacity is available to delivery pins on the north system that are downstream of this location, including those pins on the Chattanooga lateral.
Shippers could increase their net present value (NPV) by bidding to buy supplemental capacity which is available in other locations on the system or for capacity that is available from receipt pins at the Elba Island LNG Terminal, the SNG-Elba Express Interconnects, or the FGT-Suwanee Interconnect to various delivery pins. In addition, Shippers currently receiving discounted FT service could increase the NPV of their bids by increasing their discounted rate for a period of time stated by the shipper in its bid.
Pursuant to the terms of Section 2.1(b) of the General Terms and Conditions of the Southern Natural Tariff, Southern is required to post the winning bid(s) within 24 hours of awarding the capacity. Below are the winning bid(s). Southern did not have capacity to award all of the requested bids. Winning Bid(s):
Shipper 1
Volume – 5,000 dth/day
Term – January 1, 2018 through March 31, 2018
Rate – Maximum applicable zone 3 tariff rate
Note:
To increase its NPV, the Winning Shipper also bid and was awarded 3,000 Dth/day of supplemental capacity that was available to and from receipt and delivery pins in Zone 3 at the maximum tariff rate for the period January 1, 2018 through February 28, 2018.
SNG Marketing