Operational Sales Notification and Request for Bids
Pursuant to Section 14.1(i) of the General Terms and Conditions (GT&C) of the Southern Natural Gas Company (Southern) tariff, Southern is soliciting bids for operational sale of gas quantities on its system. This operational sale is attributable to the sale of a Dth equivalent quantity of fuel retained by Southern for the cost of electricity used by electric compression. Pursuant to Tariff Section 35.5 of the GT&C, Southern will sell fuel retained for electricity and credit or debit, as appropriate, the net proceeds to the Deferred Electricity Losses Account as provided in the Tariff.
Based on anticipated operating conditions, Southern expects to have up to 1,788,000 Dth available for sale on its system in the month of April 2025 and is soliciting interest to purchase some or all of this gas. Southern will accept fixed-priced bids for the purchase of the gas, with deliveries at either (i) Southern's Zone 0 South LA Pool by ratable flows from 4/1/2025 to 4/30/2025, or (ii) transfer of the full volume into purchaser's storage account on Southern's system on the first day of the month provided the purchasing party has adequate capacity in its storage account(s) to receive the gas. Evaluations will be made based upon highest revenue (price and volume), in accordance with Section 20 of the GT&C of Southern's Tariff and the ability of Southern to meet the delivery requirements of the bid as determined by Southern in its operational discretion. Bids of equal value will be awarded on a pro-rata basis. A successful purchaser(s) will be required to transport the acquired gas from the point(s) of custody transfer if the gas is not being transferred to the purchaser's storage account on Southern's system. Bids for storage transfers will be rejected if the bidder does not have the storage capacity to receive the full volume of in-ground transfer on the first day of the month.
Prior to bidding on the purchase of any gas quantities from Southern, the successful bidder(s) must have entered into a NAESB form Purchase and Sales Agreement with Southern and must satisfy Southern's credit requirements in Section 2.1(d) of the GT&C. Southern is under no obligation to accept any special provisions to the NAESB form Purchase and Sales Agreement and any bid which contains special provisions may be deemed by Southern to be non-responsive. Southern reserves the right to reject any and all bids that it determines do not meet the requirements of this posting, or to reject any low bids. Southern reserves the right to aggregate bids when multiple bids total less than the posted request.
Bids should indicate the purchasing party, quantity, and price per Dth and whether the bidder is requesting a ratable delivery at the pooling point (and, if so, the daily volume), or a full delivery at the storage pin. Custody transfer of the awarded volumes will occur at Southern's Zone 0 South LA Pool or as an in-ground transfer to the purchasing party's storage account on Southern's system. Bidders should also specify the storage account to which the gas will be transferred, if applicable.
Please submit via email to SNGBidroom@kindermorgan.com by no later than 10:30 am Central Time on 10/24/2024 and identify the communication as Southern Operational Sales Bid. Successful bidders will be notified as soon as possible but no later than 10:35 am Central Time on 10/24/2024.
If there are any questions regarding this notice, please contact Greg Pollard at (713) 420-7149 or Jerimiah Ortiz at (713) 420-2915.