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TSP/TSP Name:  81252229-GULF COAST EXPRESS PIPELINE Critical: N
Notice Type Desc (1):  TSP CAPACITY OFFERING Notice Type Desc (2):  TSP CAP OFFERING
Notice Eff Date/Time:  05/16/2022 1:10:00PM Notice End Date/Time:  05/17/2022 9:00:00AM
Post Date/Time:  5/16/2022 1:10:00 PM Notice ID: 203469
Reqrd Rsp:  5 Rsp Date: 
Notice Stat Desc:  INITIATE Prior Notice: 
Subject:  CAPACITY OFFERING
Notice Text:

NOTICE OF OPEN SEASON

Gulf Coast Express Pipeline LLC

Gulf Coast Express Expansion Project

May 16, 2022

 

 

I.     General

Gulf Coast Express Pipeline LLC (“GCX”) is holding this open season (the “Open Season”) for an expansion of the existing GCX pipeline (the “GCX Expansion Project”). The GCX Expansion Project will provide up to 570,000 MMBtu per day of firm capacity for intrastate transportation service and Section 311(a)(2) transportation service (“Expansion Capacity”) at the receipt points identified in Exhibit A, with (i) 400,000 MMBtu per day available for delivery to the South Texas Market Area (identified in Exhibit B), and (ii) delivery available to the GCX mainline direct connects (identified in Exhibit B). 

The anticipated commercial in-service date for the GCX Expansion Project is December 1, 2023

The Open Season will commence as of May 16, 2022, and end at 5:00 p.m. CDT on June 6, 2022 (“Open Season Period”).

The Expansion Capacity awarded pursuant to this Open Season will be made available through the installation of new facilities and modifications, as may be required to meet the specific needs of the shippers.  

II.  Open Season/Submission of Bids

In order to submit a Qualifying Bid in the Open Season Period, a potential shipper must submit a completed Service Request Form (“SRF”), executed by a company officer, in the form attached as Exhibit C.

Any potential shipper submitting an executed SRF by the close of the Open Season that does not meet the criteria of a Qualifying Bid will be considered to have submitted a Non-Conforming Bid.  GCX reserves the right to reject any Non-Conforming Bids.   

To the extent a potential shipper has any minimum contract quantity below which it does not desire the capacity or any contingencies to its bid, it should so indicate in the “Additional Information” section of the SRF.  If it is necessary to allocate capacity, and the potential shipper does not receive the minimum contract quantity requested, GCX will notify such potential shipper and its bid will be deemed null and void. 

Potential shippers should submit bids to: 

Gulf Coast Express Pipeline LLC

Attention: Enrique Valencia 

Email: Enrique_Valencia@Kindermorgan.com

III.  Evaluation Method

To the extent GCX receives Qualifying Bids for greater than the Expansion Capacity, GCX reserves the right to proceed with the GCX Expansion Project as contemplated and address requests for excess capacity in a subsequent project and/or open season.  

If GCX receives acceptable bids for capacity in excess of the actual amount of available capacity, then GCX will award and/or allocate the capacity in a manner that yields the highest total NPV as calculated below. In determining which bid(s) yield the highest total NPV, GCX reserves the right to combine multiple bids, in whole or in part, in a manner that results in a total NPV of the combined bids that exceeds the highest NPV achievable by accepting one or more of the disaggregated bids. This process could result in a bidder being awarded less capacity than requested (unless such bidder elects on its bid sheet not to accept an allocation of capacity).

NPV will be calculated as the sum of the present values for all of the months beginning with the first month capacity is available through the end date of the bid term.  The NPV for each month will be calculated as follows:

                NPV = R / ((1+i) to the power of n) NPV per MMBtu = NPV / MDQ

Where:

R = the total monthly revenue to GCX i = the monthly discount rate of 0.2708% (which is the annual discount rate of 3.25% divided by 12).

n = the number of months from the earliest date the capacity is available in the Open Season to the month the revenue will be received (the first month capacity is available n = 1, the second month n = 2, and so on)

MDQ = Total Requested Maximum Daily Quantity

GCX will award the Expansion Capacity to the shipper(s) submitting the Qualifying Bid with the highest NPV per MMBtu.  In the event that two or more Qualifying Bids have the same NPV per MMBtu, capacity will be awarded on a pro rata basis.

IV.     GCX's Reservation of Rights

GCX reserves the following rights:  

1.       At any time, to terminate the Open Season or to extend the Open Season Period;

2.       To modify the Open Season and/or the Open Season Period to accommodate market interest;

3.       To reject, on a not unduly discriminatory basis, any SRF which does not meet the requirements of GCX's Statement of Operating Conditions and/or GCX's general terms and conditions for intrastate transportation service (as applicable) in GCX's sole determination, and which in GCX's sole determination, is incomplete, is inconsistent with the terms of this Open Season, contains additions or modifications to the terms of the SRF, or is otherwise deficient in any respect

(including failure to provide credit support as GCX deems necessary);

4.       To reject or accept, on a not unduly discriminatory basis, any Non-Conforming Bid; 

5.       To not award the Expansion Capacity; 

6.       To modify the scope and/or the final MDQ for the GCX Expansion Project depending upon the Open Season results;

7.       To allocate, on a not unduly discriminatory basis, South Texas Market Area capacity and GCX mainline direct connects capacity, on a pro-rata basis on shipper MDQ; and 

8.       To allocate, on a not unduly discriminatory basis, Receipt Point capacity and Delivery Point Capacity, on a pro-rata basis on shipper MDQ.

This Open Season is subject to all applicable laws, orders, rules, and regulations of authorities having jurisdiction. No request for service shall be binding on GCX unless and until a duly authorized representative of both the requesting party and GCX have executed a binding transportation agreement for such service.

V.   Creditworthiness

Following submission of a complete SRF, potential shippers will be contacted by GCX for further evaluation of the potential shipper's creditworthiness.  Additionally, in the event a potential shipper is deemed noncreditworthy by GCX, the potential shipper must provide to GCX, as part of any transportation agreement, credit assurance in form and substance acceptable to GCX in its sole discretion. Such creditworthiness requirements shall remain in effect during the term of shipper's transportation agreements.

VI.     Contact Information

If you have any questions regarding this Open Season, please contact the following: 

Enrique Valencia

713-420-5017

Enrique_Valencia@Kindermorgan.com

 


GCX Expansion Project – Receipt Points

 

 

Receipt Points (Waha):

-          EPNG 

-          Enterprise 

-          ET Oasis 

-          Whitewater Agua Blanca 

-          Summit Double E

-          Kinetik Delaware Link Pipeline

 

Receipt Points (Midland): 

-          Targa Legacy 

-          Targa Heim

-          Enterprise Newberry / Leiker 

-          Select existing and any new gas processing plant interconnects along the GCX Midland Basin Lateral 36” line segment.

GCX Expansion Project – Delivery Points

 

 

GCX mainline direct connects:

-          TGP

-          NGPL


 

South Texas Market Area:

-          Corpus Christi Pipeline

-          Valley Crossing

-          NET Mexico

-          Banquete Hub

 

 

GCX Expansion Project – Service Request Form

 

 

A.      Bidder Name: ______________________________________________________

B.      Effective Date: ______________________________________________________

C.      Term (to range from 10-20 years): ______________________________________

D.      Total Requested Maximum Daily Quantity (MMBtu/day) for Intrastate Transportation Service and Section 311(a)(2) Transportation Service: _______________________ E. Fuel and Use Quantity: 4.0%

 

F.       Transportation Fees

 

Reservation Fees

$/MMBtu/day

Reservation Fee for Intrastate Transportation Service

 

Reservation Fee for Section 311(a)(2) Transportation Service

 

 

G.      Receipt Points: 

 

Receipt Point

Maximum Daily

Quantity (MMBTU)

EPNG

 

Enterprise

 

ET Oasis

 

Whitewater Agua Blanca

 

Summit Double E

 

Kinetik Delaware Link Pipeline

 

Midland area receipt point(s)

 

TOTAL:

 

 

H.      Delivery Points:

 

GCX mainline direct connects

 

Delivery Point

Maximum Daily Quantity (MMBTU)

TGP

 

NGPL

 

TOTAL:

 

 

 

 

South Texas Market Area – Maximum aggregate MMBtu available at all South Texas Market Area Delivery Points is 400,000 MMBtu, subject to operational restraints of the pipeline and specific needs of shippers.  Bidder's maximum aggregate MMBtu at all South Texas Market Area Delivery Points should not exceed Bidder's pro rata share of the total MDQ in this SRF. 


 

Delivery Point

Maximum Daily Quantity (MMBTU)

Corpus Christi Pipeline

 

Valley Crossing

 

NET Mexico

 

Banquete Hub

 

TOTAL:

 

 

 

By:                   

______________________________

Print Name:

______________________________

Title:               

______________________________

Phone:           

______________________________

Email:             

______________________________

Address:        

______________________________

                                 

______________________________

 

Additional Information to Clarify Service Request:

_____________________________________________________________________________________ _____________________________________________________________________________________ ________________

 

Bidder represents that the person executing this SRF has been duly authorized by Bidder to submit this SRF on Bidder's behalf.