Natural Gas Pipeline Company of America LLC (“NGPL”) is soliciting interest in an expansion of its Louisiana Line System 1 (“Texas Louisiana Expansion ” or “the Project”) to serve growing markets, including LNG markets, situated along NGPL's Texas and Louisiana Gulf Coast service areas. The Texas Louisiana Expansion will provide for up to 315,000 Dth/day of incremental firm eastbound transportation service from NGPL's Station 302 (located near New Caney, Texas in NGPL's Texok Zone, at the interconnect of NGPL's Gulf Coast Mainline and Louisiana Line) to new or existing delivery interconnects on NGPL's system, either in the Louisiana Zone (Segments 23 or 24) or in Segment 25 of the Texok Zone.
NGPL provides a major conduit to move supply to growing markets along NGPL's Texas and Louisiana Gulf Coast service areas. NGPL's access to diverse supply and market centers make the Texas Louisiana Expansion the best choice to satisfy the supply needs of customers situated along the Texas and Louisiana Gulf Coast, while providing market access for North American producers.
About NGPL
NGPL is one of the largest interstate pipeline systems in the country, with approximately 9,100 miles of pipelines, more than 1 million horsepower of compression facilities and 288 Bcf of working gas storage. Shippers on the Project will also have secondary delivery access to other markets and highly liquid pooling points for greater optionality.
In addition, NGPL's System-Wide service option provides Shippers with flexibility to access supplies and markets throughout NGPL's system. Election of this option enables Shippers to source gas from eight (8) different receipt zones and deliver gas to six (6) delivery zones throughout the NGPL system on a secondary basis. NGPL's Market Delivery Zone includes access to markets in Illinois, Indiana and Iowa, and serves additional markets in parts of Arkansas, Missouri, Nebraska and Wisconsin. NGPL also provides an array of services to enhance a Shipper's flexibility, including storage, balancing and park and loan (LPS) services.
Description of the Project
The Project will require facility modifications in order to increase NGPL's capacity on the Louisiana Line by up to 315,000 Dth/day. NGPL's Station 302, located in Montgomery County, TX, is expected to serve as a strategic receipt point for access to existing and expanding demand, including LNG markets, in NGPL's Texas and Louisiana Gulf Coast service areas. The expansion project will provide for incremental firm transportation service for gas flowing west-to-east from Station 302 to existing or new delivery interconnects on NGPL's Louisiana Line. Specifically, such delivery interconnects include numerous existing and proposed LNG export facilities, including those directly connected to NGPL's system such as Sabine Pass LNG and Golden Pass LNG, as well as those that are indirectly connected via NGPL's extensive network of pipeline interconnects as with Cameron LNG, Lake Charles LNG, Venture Global, Tellurian, and Sempra Port
Arthur. Other existing strategic interconnects along the Project Path include FGT, Bridgeline, Transco, Gulf South, TETCO, Texas Gas, Trunkline, ANR, various Texas intrastate pipelines, Moss Bluff Storage and the Henry Hub.
In addition, with the election of NGPL's System-Wide service option, Shippers also may utilize secondary delivery rights to existing interconnections with the Corpus Christi LNG Liquefaction Plant, the Coastal Bend Header to Freeport LNG, NET Mexico, and Valley Crossing.
NGPL invites parties interested in obtaining this firm transportation capacity to submit a Non-Binding Bid Form during this solicitation period. The bid shall not become binding between the parties until the parties mutually agree upon and execute definitive agreements. The targeted in-service date for the Texas Louisiana Expansion is currently estimated to be in the 1st Quarter of 2022, but will be determined based upon commitments received as a result of this solicitation of interest.
Additional/Alternative Receipt options for the Project
The Texas Louisiana Expansion also offers Shipper(s) an opportunity to access supply from South Texas, by contracting for capacity that is currently available from NGPL's South Texas Receipt Zone to Station 302 (“STX to 302 Capacity”), as discussed below under Existing Capacity. This would allow Shippers to combine the STX to 302 Capacity with capacity for the Project, in order to access additional supply to be transported on a primary firm basis.
The Texas Louisiana Expansion can also provide Shippers an opportunity to access supply from other receipt points on NGPL's system such as REX-Moultrie, Alliance, Northern Border or the Texok Pool, by contracting for the expansion capacity, up to 260,000 Dth/d, under NGPL's proposed “Gulf Coast Southbound Phase-III” Expansion Project. This would allow Shippers to combine the “Phase-III” expansion capacity with capacity for the Project, in order to gain access to additional supply to be transported on a primary firm basis. For more information on NGPL's Gulf Coast Southbound Phase-III Expansion Project, please refer to the Notice of Non-Binding Solicitation of Interest posted to the NGPL website on April 26, 2018. (https://www.kindermorgan.com/content/docs/GCEP_Phase_3.pdf).
Existing Capacity - South Texas Zone or Station 302 for Delivery to the Louisiana Line
Shipper may obtain service from either the South Texas Zone or Station 302 (Texok Zone) to the Louisiana Line prior to the completion of the Project. Presently, approximately 400,000 Dth/d of unsubscribed capacity is available from the South Texas Zone for delivery to Station 302 and approximately 240,000 Dth/d of unsubscribed capacity is available from Station 302 east to the Louisiana Line on a limited basis and subject to limited extension rights, as posted on NGPL's website.
Indicative Rates/Term for the Project
NGPL proposes to contract capacity for the Project on a Fixed Negotiated Rate basis. The Fixed Negotiated Rate structure provides Shippers with reservation rate certainty during the term of the FTS Agreement with no rate change due to any future NGPL FERC rate proceeding.
There are two available Project Paths for the Texas Louisiana Expansion, as set forth below. In addition, NGPL has included additional contract paths from various other receipt zones on its system, discussed below as Options 1-3. NGPL anticipates that the following indicative rates and terms will be required to support the Project:
Project Paths (Base):
Path 1 - Station 302 to Texok Zone (Segment 25); or
Path 2 - Station 302 to Louisiana Zone (Segment 23 or 24)
Capacity: up to 315,000 Dth/d
Term: 20 years
Reservation Rate (Paths 1 and 2): $0.195 per Dth of MDQ per day
Fuel and GLU:
Path 1: 2.45%;
Path 2: 3.62%
Additional Contract Paths with Alternative Receipt Zone Options:
Option-1:
Path 1: South Texas Zone to Texok Zone (Segment 25); or
Path 2: South Texas Zone to Louisiana Zone (Segments 23 or 24)
Capacity: up to 192,000 Dth/d
Reservation Rate (Paths 1 and 2): $0.34 per Dth of MDQ per day
Path 1: 2.87%
Path 2: 4.04%
Option-2:
Path 1: Iowa-Illinois Zone to Texok Zone (Segment 25); or
Path 2: Iowa-Illinois Zone to Louisiana Zone (Segments 23 or 24)
Capacity: up to 260,000 Dth/d
Reservation Rate (Paths 1 and 2): $0.59 per Dth of MDQ per day
Path 1: 5.79%, or
Path 2: 6.96%
Option-3:
Path 1: Texok Zone (Segment 26) to Texok Zone (Segment 25)
Path 2: Texok Zone (Segment 26) to Louisiana Zone (Segment 23 or 24)
Reservation Rate (Paths 1 and 2): $0.44 per Dth of MDQ per day
Path 1: 5.00%
Path 2: 6.17%
Contract terms of less than twenty (20) years would require higher unit reservation rates. If Shipper is interested in a contract term of less than 20 years, please include such term in the Bid and NGPL will consider such bid term and work with Shipper on possible alternatives.
In addition to the reservation charge, Shippers shall also pay all other applicable charges, including a commodity rate based on usage, Annual Charge Adjustment (ACA), fuel gas and gas lost and unaccounted for (“GL&U”) charges (estimated above), and any additional charges or surcharges that are in effect from time to time pursuant to NGPL's FERC Gas Tariff.
Commencement of Service
The estimated in-service date for the project is 1st Quarter of 2022. If a Shipper is interested in an alternative start date, please include this in the Bid, and NGPL will consider such bid term and work with the Shipper on possible alternatives. The target in-service date is an estimate and may change dependent upon the necessary facilities and the regulatory approvals required.
Non-Binding Bid Requirements
Interested parties should submit a completed Non-Binding Bid Form (attached as Exhibit A). The bid shall not become binding until incorporated into mutually agreed upon definitive agreements. Bids will be treated as confidential and will not be disclosed, except as authorized by the bidder or required by applicable law or regulation.
A Non-Binding Bid Form must include the following information:
• Negotiated or Maximum Recourse Reservation Rate
o with or without the System-Wide option
• Maximum Daily Quantity (“MDQ”)
· Primary Receipt Point(s), including the specified MDQ for the requested points
• Primary Delivery Point(s), including the specified MDQ for the requested points
• Contract Start Date
• Contract term
• Credit Application
Further discussions will occur with those parties submitting bids that best satisfy the criteria for the capital expenditures associated with the Project. NGPL reserves the right, to be exercised on a not unduly discriminatory basis, to continue to market the Project after the close of the Non- Binding Solicitation of Interest.
Credit Requirements
Prior to execution of the definitive agreements, Shippers will be required to demonstrate creditworthiness or provide a credit assurance alternative acceptable to NGPL in accordance with its FERC Gas Tariff.
Capacity Turnback
In addition to soliciting bids for the Project, NGPL is accepting requests for permanent turnback of capacity for capacity pathed in an eastbound direction from the primary receipt point of Station 302 to primary delivery points in the Texok Zone (Segment 25) or the Louisiana Zone (Segments 23 or 24) that will be beneficial to the design of the Project and will result in an economic gain to NGPL based on a comparison of the savings associated with Project facilities that are no longer required and the lost revenue associated with the turnback. The effective date of the turnback must correspond with the in-service date of the Project.
Any turnback capacity that is proposed to be effective later than the proposed in-service date of the Project will not be considered. NGPL may aggregate requests for turnback and accept such requests in the manner that provides the most economic benefit to NGPL. NGPL will consider any requests for turnback on a nondiscriminatory basis. Shippers interested in capacity turnback should submit a request by the end of the Non-Binding Solicitation of Interest, as specified above. Requests should include the proposed effective date of the turnback, the proposed capacity to be turned back, and the applicable receipt and delivery points that Shipper is proposing to turn back.
Contact List
This Non-Binding Solicitation of Interest will start at 10:00 a.m. CST on Monday, October 21, 2019 and close at 4:00 p.m. CST on Friday, November 22, 2019. Interested parties should send their bids via email to: Jason_Sweeney@kindermorgan.com. Bids may also be sent by mail or FAX to the attention of Jason Sweeney, 1001 Louisiana Street, Suite 1000, Houston, TX 77002 or via facsimile number (713) 230-5577. NGPL welcomes your interest in our Texas Louisiana Expansion . Please contact any of the following NGPL representatives with questions concerning this notice or the Bid Form:
Sam Hosper – Phone: (630) 725-3035; Email: sam_hosper@kindermorgan.com
Mary Limbaugh – Phone (713) 420-4576; Email: mary_limbaugh@kindermorgan.com
Jason Sweeney – Phone: (713) 420-6055 Email: jason_sweeney@kindermorgan.com
David Weeks – Phone: (630) 725-3030; Email: david_weeks@kindermorgan.com
Any updates to this Non-Binding Solicitation of Interest will be posted online at www.kindermorgan.com under Natural Gas Pipelines, NGPL, NGPL Projects.
EXHIBIT A
NON-BINDING BID FORM
Texas Louisiana Expansion
A. Shipper Name: _ _ B. Contract Start Date: _ _
C. Contract Term : _
D. Maximum Daily Quantity (MDQ): _ (Dth/d)
E. Reservation Rate: _ ($ per Dth of MDQ per day)
Fixed Negotiated Rate _
or Recourse Rate __
Does Reservation Rate include System-wide service option: Yes _
Commodity Rate: Fixed Negotiated Rate ____ or Recourse Rate _____ No
F. Primary Receipt/Delivery Point Information:
Station 302 to Texok Zone or Louisiana Zone – Project Paths (Base):
PRIMARY RECEIPT POINT:
Name/Location County State LOC No. MDQ (Dth/d)
Station 302
Montgomery
Texas
50653
TOTAL
PRIMARY DELIVERY POINT(S) TEXOK SEGMENT 25 (Path 1):
PRIMARY DELIVERY POINT(S) LOUISIANA ZONE SEGMENTS 23 & 24 (Path 2):
Additional Contract Path Options:
Option 1: South Texas Receipt Zone
Option 2: Iowa-Illinois Receipt Zone
Option 3: Texok Receipt Zone (Segment 26)
PRIMARY DELIVERY POINT(S) LOUISIANA ZONE SEGMENTS 23 & 24 (Path 2) :
G. Credit Application Acknowledged and Submitted: Yes _ No
By:
Print Name:
Title:
Phone:
Email:
Address: ______________________________________
EXHIBIT B
CREDIT APPLICATION FOR NATURAL GAS PIPELINE COMPANY OF AMERICA LLC (Natural)
Section 1 --General Information
Shipper / Operator Name_______________________________________________________________________________
(Circle one)
Shipper / Operator Address_____________________________________________________________________________
(Include City, State, Zip)
DUNS# __ __ - __ __ __ - __ __ __ __ FEIN __ __ - __ __ __ __ __ __ __
Contact Person_______________________________________________ Telephone No. (____)_____________________
Business Entity: __ “S” Corporation __ “C” Corporation __ Partnership __Other FAX No. (____)___________________
Type of Business ___________________________________________________ Number of years in business_________
List parent corporation of Shipper/Operator (if Shipper/Operator is a subsidiary company) or general partners (if Shipper/Operator is a partnership) ________________________________________________________________________
Please identify (specify) whether you are owned by Brookfield Infrastructure Partners L.P. or Kinder Morgan, Inc.
____________________________________________________________________________________________________
Section 2 -- Standardized Credit Information
Please provide Shipper's long-term unsecured debt credit ratings (including Outlook) current as of the date of this Credit Application:
Standard & Poor's ________________________ Moody's ____________________________________
Is Shipper: - Operating under federal bankruptcy laws __Yes __No
- Subject to liquidation or debt reduction procedures under state laws __Yes __No
- Subject to pending liquidation or regulatory proceedings in state or federal courts
which could cause a substantial deterioration of Shipper's financial condition __Yes __No
- Subject to any collection lawsuits or outstanding judgments which would affect
Shipper's ability to remain solvent __Yes __No
- Are there any overdue amounts owed Natural __Yes __No
Section 3 -- Additional Financial Information and Documentation
Please provide Shipper's estimated activity under all requested services:
Estimated Monthly Volume for all Services: (Dth)
Estimated Monthly Transportation/Storage Charges for all services $________________
Estimated Term (in months) of Capacity Release Request _________________
Expected Commencement Date for requested service or capacity release: _____________________
If Shipper's audited financial information is not publicly available, please enclose current financial statements, annual reports, 10-K or other reports to regulatory agencies, or any reports from credit reporting agencies which are available.
Natural may request additional credit information and documentation in order to perform a credit evaluation of Shipper, in accordance with the provisions of its FERC Gas Tariff.
Incomplete applications will be declined.
______________________________________________________________ ______________________________
Shipper's Signature Date