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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:  07/24/2020 10:27:57AM Notice End Date/Time:  12/31/2049 9:00:00AM
Post Date:  7/24/2020 10:27:57 AM Notice ID: 704714
Reqrd Rsp:  5 Notice Stat Desc:  INITIATE Prior Notice: 
Subject:  Open Season for NS Expansion
Notice Text:

July 24, 2020

To All Southern Natural Gas Company Shippers

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


This is to announce an open season to solicit binding bids for firm transportation service ("FT") for approximately 7,000 Dth/d of incremental expansion capacity on the Southern Natural Gas Company, L.L.C. (“SNG”) pipeline system from its interconnection with Transcontinental Gas Pipe Line (“Transco”) in Fayette County, GA (receipt pin 50069, Transco/SNG, Fayette County, GA) to various delivery locations along SNG's North Main Lines.

SNG proposes to build new pipeline facilities (“SNG Expansion”) in order to facilitate this expansion. This posting is being made to notify shippers that, as part of this SNG Expansion, incremental firm transportation capacity will be available on SNG's North Main Line from the Transco interconnect to points west along its north main line and north along the Chattanooga lateral. 

A portion or all of this capacity is subject to prearranged bid. SNG anticipates that a monthly negotiated reservation rate of approximately $20.38/dth/month will be required. However, the final rate will be determined by the scope of the facilities required in order to meet the terms of the bids.

The capacity is expected to become available no earlier than October 1, 2021. All bids for this capacity must have a requested start date coincident with the in-service date of the facilities required. The actual start date shall be subject to receipt of regulatory approvals and SNG's construction schedule.

 

The open season will commence as of the date and time this notice is posted and end at 10:30 a.m. CCT on August 7, 2020.

 

SNG will not consider bids with terms of less than fifteen (15) years. SNG reserves the right not to accept, in a not unduly discriminatory manner among similarly situated bids, any bid that is uneconomical to SNG; that would require the construction of additional facilities other than those required to expand the SNG pipeline to the level proposed in this open season; that would require the construction of facilities which are disproportionate in cost to the quantity bid; that does not meet the requirements of these open season guidelines; that contains unacceptable conditions or contingencies; or that contains a start date outside the parameters stated above. With the exception of any conditions precedent relating to receipt of regulatory approvals, Shippers must have removed all conditions to their bids by a date acceptable to SNG. SNG reserves the right to not accept bids at less than the maximum tariff rate. Seasonal bids will not be considered in this open season. Only valid requests for service under the terms of SNG's tariff and under the terms of these open season guidelines will be considered and Shippers must be able to show that they are credit-worthy consistent with SNG's guidelines for expansions. SNG will require each shipper to meet minimum financial criteria (the “Creditworthiness Test”) in order to proceed with the expansion opportunity. All bids will be considered binding and, if accepted, SNG shall have the right to charge the winning bidder for the capacity awarded under the terms of the bid.  

In conjunction with the SNG Expansion, SNG hereby solicits capacity turnback from existing firm transportation customers that can be utilized on the related portions of SNG's system in order to most efficiently design the SNG Expansion and avoid the construction of unnecessary expansion facilities. Such capacity proposed to be turned back must coincide with the design and timing of the SNG Expansion in order to be considered. SNG will only accept turnback bids for capacity to the extent they result in an economic benefit to SNG when combined with the FT Service to be provided under the SNG Expansion. Any existing shippers interested in relinquishing some or all of its firm capacity must submit a bid for turnback specifying the contract quantities, rate and delivery and receipt points from which the capacity is to be turned back by the deadline established above for bids in this open season in order for the turnback request to be considered.
 
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), 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, SNG 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.  

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 205-612-8946.

SNG Marketing