October 13, 2021
To All Southern Natural Gas Shippers Re: Award of Firm Transportation Capacity in Open Season
On September 27, 2021, 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 November 1, 2021 through April 30, 2022 on the south system of the Southern Natural Gas Company, L.L.C. ("Southern”) pipeline system. 12,500 dth/day 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) and TGP Rose Hill (PIN #420546). This capacity is available to delivery pins as far east as Southern's Wrens Compressor Station (Segment 560) for the period November 1, 2021 through April 30, 2022 and only becomes available to pins that are south of the Wrens Compressor Station (Segments 580, 590, 600, 610 and 615) for the period January 1, 2022 through April 30, 2022.
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 – 5,500Dth/day
Term – November 1, 2021 through April 30, 2022
Rate – Maximum applicable zone 3 tariff rate
Note:
To increase its NPV, the Winning Shipper also bid and was awarded 25,700Dth/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 November 1, 2021 through April 30, 2022.
Shipper 2
Volume – 7,000Dth/day
To increase its NPV, the Winning Shipper also bid and was awarded 109,760Dth/day (November 1, 2021 through November 30, 2021) and 11,200Dth/d (December 1, 2021 through March 31, 2022) of supplemental capacity that was available to and from receipt and delivery pins in Zone 3 at the maximum tariff rate.
SNG Marketing