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TSP/TSP Name:  6900518-SOUTHERN NATURAL GAS CO. Critical: N
Notice Type Desc (1):  TSP CAPACITY OFFERING Notice Type Desc (2):  TSP CAP OFFERING
Notice Eff Date/Time:  01/02/2019 12:09:27PM Notice End Date/Time:  12/31/2049 9:00:00AM
Post Date:  1/2/2019 12:09:27 PM Notice ID: 702907
Reqrd Rsp:  5 Notice Stat Desc:  INITIATE Prior Notice: 
Subject:  Open Season for Firm Transport Capacity
Notice Text:

January 2, 2019

To All Southern Natural Gas Company Shippers

RE: Open Season Announced for Firm Transportation (FT)/Expansion


Southern Natural Gas Company, L.L.C. (“SNG”) has placed into service its Fairburn expansion project and new interconnection with Transcontinental Gas Pipe Line (“Transco”) in Fayette County, GA (receipt pin 50069, Transco/SNG, Fayette County, GA). As a result, approximately 15,000 dth/day of incremental firm transportation capacity is available from this new interconnect to delivery locations on (i) SNG's North Main Line as far west as the AGL-SNG Atlanta Suburbs Area (pin 940018), and (ii) along SNG's South Main Line, west of SNG's Thomaston compressor station, including limited deliveries to the South Georgia Lateral. Of this quantity, approximately 5,000 dth/day is also available as far east as the AGL-SNG West Macon Area Point (pin 940055), east of the Thomaston Compressor Station.

This open season is being made to solicit short term bids for the aforementioned 15,000 dth/day which will be operationally available for the remainder of the winter season (a period ending April 30, 2019). The capacity available to be awarded may not be available in the same increments to all locations along SNG's South Main Line. SNG reserves the right to reject any bids at less than maximum tariff rate.  Any shippers interested in a term longer than April 30, 2019 should contact their Account Manager or Darryl Outlaw.

This open season will commence as of the date and time this notice is posted and end at 10:00 a.m. CCT on January 8, 2019.

Shippers may submit bids to SNG for FT service by completing a standard transportation request form for FT service and emailing it to FTServiceRequest@kindermorgan.com. Please call your account manager if you need an FT Request Form or you can paste the following link in your browser and then click on SNG Service Request. http://pipeportal.kindermorgan.com/PortalUI/CommonForms.aspx?TSP=SNGD

On the request form, Shippers should indicate the term (start and end date within the date range being offered), FT quantity (in dth/day), rate (monthly reservation charge per dth requested), and delivery pins being bid. The receipt pin will be the interconnection with Transco described above (pin 50069). Only valid requests for service under the terms of SNG's Tariff will be considered. All bids will be considered binding and, if accepted, Southern shall have the right to charge the winning bidder for the capacity awarded under the terms of the bid.  

SNG 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. Shippers may increase their NPV by bidding to buy supplemental capacity which is available in other locations on the system or for capacity that is available from receipt pins at the Elba Island LNG Terminal, the SNG-Elba Express Interconnects, or the FGT-Suwanee Interconnect to various delivery pins. In addition, Shippers currently receiving discounted FT service may increase the NPV of their bids by increasing their discounted rate for a period of time stated by the shipper in its bid.  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, SNG will use a discounted cash flow factor of 10.24%. SNG will have the right to aggregate bids in a manner that generates the highest net present value to SNG.

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 quantity of capacity they are willing to take in the event the full contract quantity of the bid is not available or if SNG 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.

SNG 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 SNG Tariff.

If you have any questions regarding the Open Season, please contact your Account Manager or Darryl Outlaw at 205-325-7421.

SNG Marketing