Informational Postings :: Southern Natural Gas Company, L.L.C.

Informational Postings

Notice Detail

TSP/TSP Name: 6900518-SOUTHERN NATURAL GAS CO.	Critical: N
Notice Type Desc (1): TSP CAPACITY OFFERING	Notice Type Desc (2): TSP CAP OFFERING
Notice Eff Date/Time: 09/29/2023 10:08:54AM	Notice End Date/Time: 12/31/2023 9:00:00am
Post Date/Time: 9/29/2023 10:08:54 AM	Notice ID: 708493
Reqrd Rsp: 1	Rsp Date: 10/04/2023
Notice Stat Desc: INITIATE	Prior Notice:
Subject: Open Season Zone 1 Firm Transportation

Notice Text:

September 29, 20223

To All Southern Natural Gas Company Shippers

RE: Open Season Announced for Firm Transportation

This is to announce an open season for bids for short-term firm transportation capacity (“FT”) on the Southern Natural Gas Company, LLC. (“Southern”). The capacity is available from Zone 1 receipts to delivery locations in Zone 1. The capacity available to be awarded may not be available in the same increments to all locations in Southern's Zone 1 and may not be available along particular laterals or at certain receipt or delivery points.

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 10:30 a.m. CCT on October 4, 2023.

Shippers may submit bids to Southern for FT service by completing a standard transportation request form for FT service emailing it to FTServiceRequest@kindermorgan.com. Please call your account manager if you need a 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

On the request form, Shippers should indicate the term (start and end date within the date range being offered), quantity (in dth/d), rate, delivery points, and receipt points 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.

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. 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 ten (10) 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. The service package will be awarded at a uniform hourly flow rate.

If you have any questions regarding the Open Season, please contact your Account Manager (Lisa Guthrie at 205-325-3816, Jerry Nelson at 205-325-7257).

SNG Marketing