May 26, 2022
To All Elba Express Company Shippers RE: Open Season Announced for Firm Transportation Capacity
This is to announce an open season to solicit binding bids for long term, north-to-south firm transportation service ("FTS”) winter only (November through March) and year round capacity on the Elba Express Company, L.L.C. (“EEC”) pipeline system from the EEC interconnects with Transco Zone 4 Pin 938510 and Zone 5 Pin 938610 to delivery pins EEC/SNG Cypress 606360, CarGas/EEC Port Wentworth 938800, EEC/SNG Port Wentworth 938850, Oglethorpe/ EEC Plant Effingham 938300, and So Co/ EEC Plant McIntosh 938200. For the winter capacity, up to 84,648 Dth/d is available starting November 1, 2022 and approximately 97,109 Dth/d is available starting November 1, 2023. The year round capacity up to 14,118 Dth/d is available to start April 1, 2023.
The capacity available to be awarded may not be available in the same increments to all locations along EEC's system or at certain receipt or delivery pins. Shippers interested in a seamless firm transportation service combining EEC capacity and Southern Natural Gas (SNG) capacity should contact their SNG Account Manager for further information. Any bid for the winter only capacity with a start date earlier than November 1, 2022 or later than November 1, 2023 will be rejected. Any bid for the year round capacity with a start date later than April 1, 2023 will be rejected. EEC reserves the right to reject any bids at less than maximum tariff rate, and will reject any bids that are less than a two year term. EEC will accept negotiated rate bids at the maximum tariff rate. A portion of the available capacity is subject to a prearranged bid at a negotiated rate.
The open season will commence as of the date and time this notice is posted and end at 2:00 p.m. CCT on June 16, 2022. Shippers may submit bids to EEC for FTS service by completing a standard transportation request form for FTS service and emailing it to FTServiceRequest@kindermorgan.com. Please call your account manager if you need an FTS Request Form or you can paste the following link in your browser and then click on EEC Service Request. http://pipeportal.kindermorgan.com/PortalUI/CommonForms.aspx?TSP=EEC
On the request form, Shippers should indicate the term (start and end date within the date range being offered), quantity (in Dth/d), rate, delivery pins, and receipt pins being bid. Only valid requests for service under the terms of EEC's Tariff will be considered. All bids will be considered binding and, if accepted, EEC shall have the right to charge the winning bidder for the capacity awarded under the terms of the bid. The service package will be awarded at a uniform hourly flow rate.
EEC will award the capacity from bids received during the open season on the basis of net present value (“NPV”) determined with reference to the rate, quantity, term and the date the service is to commence. Please note that offers to extend the term of existing firm contracts will not be utilized as consideration in calculation of the NPV in this open season.
In calculating the net present value, EEC will use a discounted cash flow factor of 10.24%. EEC will have the right to aggregate bids in a manner that generates the highest net present value to EEC. Comparable winning bids that cannot be awarded in full will be awarded on a pro rata basis. 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 EEC must prorate the bids. Shippers should also indicate in their bids if their bid is contingent upon being awarded the full term of the bid or if they will accept a partial term. 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. EEC will take no longer than ten (10) business days to award the bids. This open season is subject to the terms of Section 2.1 (b) of the General Terms and Conditions of EEC's Tariff. If you have any questions regarding the Open Season, please contact your Account Manager (Lisa Guthrie at 205.325.3816, Jerry Nelson at 205.325.7257) or Devy Traylor at 205.325.3524.
EEC Marketing
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