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TSP/TSP Name:  8001703-EL PASO NATURAL GAS CO. L.L.C. Critical: N
Notice Type Desc (1):  TSP CAPACITY OFFERING Notice Type Desc (2):  TSP CAP OFFERING
Notice Eff Date/Time:  05/31/2022 2:19:47PM Notice End Date/Time:  06/01/2023 9:00:00am
Post Date/Time:  5/31/2022 2:19:47 PM Notice ID: 614966
Reqrd Rsp:  5 Rsp Date:  06/01/2023
Notice Stat Desc:  INITIATE Prior Notice: 
Subject:  Reservation of Capacity Notice
Notice Text:



Capacity Reserved for Future Expansion Project


On May 18, 2022, El Paso Natural Gas Company, L.L.C. ("EPNG") posted for bid 400,000 dekatherms (Dth) per day of expansion capacity with the following parameters:


Primary Receipt Points:


       Proposed new interconnects on EPNG's Line No. 1103 and/or Line No. 1100 to be located at approximately Mile Post 558 on EPNG's Line No. 1100 in Pinal County, Arizona, at Section 24, Township 7S, Range 5E.


Primary Delivery Points:


       New Mexico, Arizona and California delivery locations on EPNG's South Mainline system (including delivery points on EPNG laterals), subject to the availability of capacity.


Minimum Receipt Point Pressures:


       Prospective shippers were notified that they would be required to tender gas at the Primary Receipt Points at the following pressures:

o      Line No. 1100 – MAOP at specified location

o      Line No. 1103 – MAOP at specified location


In its posting, EPNG solicited bids on this expansion capacity commencing at 9:00 a.m., Mountain Clock Time, on May 18, 2022, through 2:00 p.m., Mountain Clock Time, on May 25, 2022.  Pursuant to Section 4.7 of the General Terms and Conditions of EPNG's FERC Gas Tariff, this posting is to confirm that EPNG received no bids for the capacity and, based on the results of that open season, is reserving 400,000 Dth/day of South Mainline capacity (“Reserved Capacity”) associated with certain capacity-enhancing facility modifications on EPNG's system (“Project”).  The Project will help facilitate deliveries from the proposed Arizona Energy Storage Project to downstream markets on EPNG's system.


This Reservation of Capacity for 400,000 Dth per day includes the primary receipt points listed above and all remaining capacity associated with those delivery locations listed in Exhibit A in the Phoenix/Tucson  metropolitan area and other potential mainline delivery locations (also commonly referred to as the “Phoenix/Tucson System”) supplied by multiple laterals off the EPNG South Mainline.  This reservation of capacity is effective as of the date of this posting.


The Arizona Energy Storage Project will be developed by a yet-to-be-formed entity (“AES”) which will be owned, in part, by an affiliate of EPNG.  The project will be sited in Pinal County, Arizona and will be designed to provide not less than four (4) billion cubic feet of storage capacity and an estimated 400,000 Dth/d of daily withdrawal capability intended to serve Phoenix area markets utilizing the Reserved Capacity.  Subject to receipt of sufficient shipper commitments and timely receipt of all necessary regulatory approvals, permits, and other authorizations required for the construction and operation of the Arizona Energy Storage Project, in a form and substance satisfactory to AES in its sole discretion, AES will use commercially reasonable efforts to achieve an initial in-service date for the Arizona Energy Storage Project of  no later than November 30, 2025, and a full in-service date of no later than December 31, 2029.  Subject to the foregoing, the 400,000 Dth per day of capacity being reserved herein would be leased from EPNG to AES to facilitate deliveries to AES' customers.


Pursuant to Section 4.7(c) of the General Terms and Conditions of EPNG's FERC Gas Tariff, EPNG is soliciting non-binding offers from existing shippers to turnback capacity.  If existing shippers express interest in turning back capacity, EPNG will propose to accept such offers on a competitive basis (e.g., via a reverse auction for a permanent release of their firm capacity to EPNG) subject to: (1) the shipper's offer providing EPNG the highest value; and (2) EPNG's ability to use the capacity to meet the needs of new shippers on the Project.  If existing shippers express interest in turning back capacity, EPNG will make a subsequent posting detailing the conditions for shippers to submit offers to turn back their capacity.


Pursuant to Section 4.7(f) of the General Terms and Conditions of EPNG's FERC Gas Tariff, capacity reserved for the Project is available for transportation service on a limited-term basis up to the in-service dates of the Project.  Periodically, EPNG will update this posting to provide notice if any of the reserved capacity has been sold on a limited-term basis.


In response to expressions of interest about the Project and the Arizona Energy Storage Project, EPNG and AES are planning to conduct an Open Season for Arizona Energy Storage Project capacity during the third quarter of 2022.  Interested shippers may contact their EPNG Business Development representatives for more information.


Please contact your Business Development representative if you have any questions.


                                    Greg Ruben

                                    Vice President

                                    Business Development


Exhibit A