Informational Postings :: Elba Express Company, L.L.C.

Informational Postings

Notice Detail

TSP/TSP Name: 828834445-ELBA EXPRESS	Critical: N
Notice Type Desc (1): TSP CAPACITY OFFERING	Notice Type Desc (2): TSP CAP OFFERING
Notice Eff Date/Time: 07/15/2024 3:38:24PM	Notice End Date/Time: 12/31/2024 9:00:00am
Post Date/Time: 7/15/2024 3:38:24 PM	Notice ID: 709584
Reqrd Rsp: 1	Rsp Date: 07/29/2024
Notice Stat Desc: INITIATE	Prior Notice:
Subject: Open Season Firm Transportation

Notice Text:

July 15, 2024

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 firm transportation service ("FTS") for long-term, year round, north-to-south incremental expansion capacity on the Elba Express Company, L.L.C. (“EEC”) pipeline system from the EEC interconnects with Transco (Receipt PIN 938510 and Receipt PIN #938610) and Southern Natural Gas (“SNG”) (Receipt PIN 606380) to delivery points along the EEC pipeline (“EEC Expansion”). 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. A portion of the available capacity is subject to a prearranged bid at a negotiated rate.

The expansion capacity can be requested to commence as early as November 1, 2028, but no later than November 1, 2029. The actual start date shall be subject to receipt of all required regulatory approvals and completion of construction of the expansion facilities. Any bid with a start date earlier than November 1, 2028 or later than November 1, 2029 will be rejected. The minimum acceptable term is twenty (20) years, and the maximum acceptable term is thirty (30) years.

The open season will commence as of the date and time this notice is posted and end at 3:30 p.m. CCT on July 29, 2024.

In conjunction with the EEC Expansion, EEC hereby solicits capacity turn back from existing firm transportation customers that can be utilized on the related portions of EEC's system in order to most efficiently design the EEC Expansion and avoid the construction of unnecessary expansion facilities. Such capacity proposed to be turned back must coincide with the design and timing of the EEC Expansion in order to be considered. EEC will only accept turn back bids for capacity to the extent they result in an economic benefit to EEC when combined with the FT Service to be provided under the EEC Expansion. Any existing shippers interested in relinquishing some or all of its firm capacity must submit a bid for turn back specifying the contract quantities, rate and delivery and receipt points from which the capacity is to be turned back by the deadline established above for bids in this open season in order for the turn back request to be considered.

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.

EEC reserves the right not to accept, in a not unduly discriminatory manner among similarly situated bids, any bid that is (i) uneconomical to EEC; (ii) that would require the construction of additional facilities other than those required to construct the proposed EEC expansion; (iii) that would require the construction of facilities which are disproportionate in cost to the quantity bid; (iv) that does not meet the requirements of these open season guidelines; (v) that contains unacceptable conditions or contingencies; or (vi) that contains a start or end date outside the parameters stated above.

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 Lisa Guthrie at 205.325.3816, Jerry Nelson at 205.325.7257, or Stephen Holmes at 205.325.7420.

EEC Marketing