December 17, 2020
To All Southern Natural Gas Shippers
Re: Award of Firm Transportation Capacity in Open Season
On December 10, 2020, Southern Natural Gas Company, L.L.C.
("Southern”) announced an open season for bids for 10,000 Dth/day of short-term
firm transportation capacity (“FT”) 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).
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
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.
Volume – 10,000 Dth/day)
Term – January 1, 2021 through April 30, 2021
Rate – Maximum applicable zone 3 tariff rate
To increase its NPV, the Winning Shipper also bid and was
awarded 3,200 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 January
1, 2021 through April 30, 2021.