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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:  08/06/2020 4:31:01PM Notice End Date/Time:  12/31/2049 9:00:00AM
Post Date:  8/6/2020 4:31:01 PM Notice ID: 704756
Reqrd Rsp:  5 Notice Stat Desc:  SUPERSEDE Prior Notice:  704703
Subject:  Award ofSouth System Capacity
Notice Text:
February 13, 2004

August 6, 2020

 

 


To All Southern Natural Gas Shippers

Re: Award of Firm Transportation Capacity in Open Season


On July 21, 2020, Southern Natural Gas Company, L.L.C. ("Southern”) announced an open season for bids for short-term firm transportation capacity (“FT”) that is operationally available from October 1, 2020 through April 30, 2021 on the south system of the Southern Natural Gas Company, L.L.C. ("Southern”) pipeline system. 60,000 dth/day is available until December 31, 2020 and 50,000 dth/day is available for the period of January 1, 2021 through April 30, 2021. 40,000 dth/day of this capacity is available from receipt pins as far west as those on Segment 410 which includes MS Hub/SNG Simpson County (PIN #609400), SNG/MEP Smith County (PIN #44449) and Gulf South/SNG Smith County (PIN #608100) or 60,000 dth/d is available from receipt pins downstream of this location along Southern's south system including TGP Rose Hill (PIN #420546). This capacity is available to delivery pins as far east as Southern's Wrens Compressor Station (Segment 560). 50,000 dth/day is available to pins that are south of the Wrens Compressor Station (Segments 580, 590, 600, 610, 615, 620) and  up to 10,000 dth/day is available to delivery pins east of the Wrens Compressor Station as far as Aiken, S.C. (Segment 570).

 

Shippers could increase their net present value (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 could increase the NPV of their bids by increasing their discounted rate for a period of time stated by the shipper in its bid.

Pursuant to the terms of Section 2.1(b) of the General Terms and Conditions of the Southern Natural Tariff, Southern is required to post the winning bid(s) within 24 hours of awarding the capacity.  Below are the winning bid(s).  Southern did not have capacity to award all of the requested bids.

Winning Bid(s):

 

Shipper 1

Volume – 50,000 dth/day (Oct – Dec) and 40,000 dth/d (Jan – Apr)

Term – October 1, 2020 through April 30, 2021

Rate – Maximum applicable zone 3 tariff rate

 

Note: 

To increase its NPV, the Winning Shipper also bid and was awarded an average of 15,000 Dth/day of supplemental capacity that was available to and from receipt and delivery pins in Zone 3 at the maximum tariff rate for the period October 1, 2020 through March 31, 2021.

 

 

Shipper 2

Volume – 10,000 dth/day

Term – October 1, 2020 through April 30, 2021

Rate – Maximum applicable zone 3 tariff rate

 

Note: 

To increase its NPV, the Winning Shipper also bid and was awarded an average of 28,500 Dth/day of supplemental capacity that was available to and from receipt and delivery pins in Zone 3 at the maximum tariff rate for the period December 1, 2020 through February 28, 2021.

 

 

SNG Marketing