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 following criteria:
Available Capacity (all criteria must be met concurrently)
Maximum available at SESH-Gulf South to SNG (pin# 606500) = 242,400 dth/d
Maximum available at SESH-ETC Tiger to SNG (pin# 606700) = 387,600 dth/d
Maximum available at SESH-Enable to SNG (pin# 606400) = 242,400 dth/d
Maximum combination of pin# 606500 + pin# 606700 = 387,600 dth/d
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 30, 2020.
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. http://pipeportal.kindermorgan.com/PortalUI/CommonForms.aspx?TSP=SNGD
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 SESH system..
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. SNG Marketing