December 10, 2020
To All Southern Natural Gas Company Shippers
RE: Open Season Announced for South System Firm Transportation
This is to announce an open season for bids for short-term
firm transportation capacity (“FT”) of up to 10,000 dth/d that is operationally
available from January 1, 2021 through April 30, 2021 on the south system of
the Southern Natural Gas Company, L.L.C. ("Southern”) pipeline system. This
capacity is available from receipt pins as far west as TGP Rose Hill (PIN
#420546) and other pins along the south main downstream of this location. This
capacity is available to delivery pins as far east as Southern's Wrens
Compressor Station (Segment 560) and to pins that are as far south as Savannah,
GA. (Segments 580, 615, 620).
The capacity available to be awarded may not be available in
the same increments to all locations along Southern's south system and may not
be available along particular laterals or at certain receipt or delivery pins. Please
note that this capacity is not available from receipt pins on Southern's north
main system. Delivery pins on (i) Southern's north main system, (ii) Segments
500 and 510 north of Thomaston Compressor Station, or (iii) the South Georgia
lateral with a flow direction from the south system are not included in this
open season. Any bid with a start date earlier than January 1, 2021 or for an
ending date later than April 30, 2021 will be rejected. Southern reserves
the right to reject any bids at less than maximum tariff rate.
The open season will commence
as of the date and time this notice is posted and end at 10:00 a.m. CCT on December
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.
On the request form, Shippers
should indicate the term (start and end date within the date range being
offered), quantity (in dth/day), rate, delivery pins, and receipt pins being
bid. Only valid requests for service under the terms of Southern'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.
The term of the service package will not contain an evergreen provision and the firm
capacity available to be awarded may be will likely be restricted to a uniform
hourly flow rate, depending on the location.
Southern 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, such as 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. The restriction on the term is
only limited to the 10,000 dth/day of operationally available capacity and does
not limit the term a shipper may bid on any supplemental capacity in order to
increase its net present value. 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, Southern will use a discounted cash flow factor of 10.24%. Southern will
have the right to aggregate bids in a manner that generates the highest net
present value to Southern.
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 volume of
capacity they are willing to take in the event the full contract quantity of
the bid is not available or if Southern 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.
Southern will take no longer than three (3) 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 Southern's Tariff.
If you have any questions regarding the Open Season, please contact your
Account Manager or Darryl Outlaw at 205-612-8946.