October 16, 2020
To All Southern Natural Gas Company Shippers
Re: Open Season Announced for Receipt Point Amendments
In this open season Southern Natural Gas Company, L.L.C.
("Southern”) is offering shippers the opportunity to realign contracted
firm receipt rights amongst the three SESH/SNG interconnects: SESH - Gulf
South to SNG (pin# 606500), SESH - ETC Tiger to SNG (pin# 606700) and SESH - Enable
to SNG (pin# 606400). Please note that this open season does not increase the
total capacity that may be contracted by Southern's shippers at the SESH
receipt pins. Southern's shippers are limited at the SESH receipt pins by the
Available Capacity (all criteria must be met
Maximum available at SESH-Gulf South to SNG (pin# 606500) =
Maximum available at SESH-ETC Tiger to SNG (pin#
606700) = 387,600 dth/d
Maximum available at SESH-Enable to SNG (pin# 606400) =
Maximum combination of pin# 606500 + pin# 606700 = 387,600
Maximum combination of pin# 606400 + pin# 606500 + pin
#606700 = 484,800 dth/d
This open season is for FT receipt point amendments on the Southern
pipeline system only. Pursuant to Southern's tariff, Southern must hold an open
season prior to awarding any changes in firm receipt points held by a shipper
under existing firm transportation contracts. Requests for incremental capacity
will not be considered in this open season. Southern will accepts bids for
shifts to be effective between December 1, 2020 through July 1, 2021. Any bids
with an effective date before December 1, 2020 or later than July 1, 2021 will
be rejected. If the volume bid for a particular receipt pin exceeds the
capacity available taking into account existing rights for shippers that are
not realigning, then the bids will be prorated. For purposes of evaluating the
bids and pro rating, if needed, all bids will be treated as if they are
effective December 1, 2020.
The open season will commence as of the
date and time this notice is posted and end at 10:00 a.m. CCT on Friday, October
Shippers may submit bids to Southern 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.
Only valid requests for service under the terms of
Southern's tariff will be considered. All bids will be considered
binding. SNG reserves the right not to accept, in a not unduly
discriminatory manner among similarly situated bids, any bid that would require
the construction of facilities, or that contains unacceptable contingencies.
Shippers may request to shift from their current SESH receipt point to another
available receipt point on the system; however, these three receipt points are
the only available receipt points related to Southern's equity interest in the
It should be noted that, according to the terms of
Southern's tariff, bids for receipt point amendments will all be considered to
have a net present value of zero. Southern will not consider offers by a
shipper to increase its NPV by increasing an existing discounted rate, if
applicable, or by extending the term of its contract. Comparable winning bids
that cannot be awarded in full will be awarded capacity on a pro rata basis.
Shippers should indicate in their bids the minimum volume of capacity they are
willing to take in the event Southern must prorate the bids. If bids are
submitted in excess of the available capacity and they must be prorated, the
bids will be prorated as though the bidder bid for the maximum available
capacity to be awarded.
Southern will try to complete the award
process prior to November 4, 2020, but will take no longer than 10 business
days to award the bids. This open season is subject to the terms of
Section 2(b) of the General Terms and Conditions of Southern's Tariff.
If you have any questions regarding the
Open Season please contact your Account Manager.