NOTICE OF OPEN SEASON
Gulf Coast Express Pipeline LLC
Gulf Coast Express Expansion Project
May 16, 2022
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.
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:
Attention: Enrique Valencia
Email: Enrique_Valencia@Kindermorgan.com
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.
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.
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.
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
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.
Corpus Christi Pipeline
Valley Crossing
NET Mexico
Banquete Hub
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.