November 11, 2024 To All Southern Natural Gas Company Shippers
REVISION – To Include Map
RE: Open Season Announced for Gas Supply on TGP Mississippi Crossing (“Open Season”) Southern Natural Gas Company, L.L.C. ("SNG") in this open season is soliciting shippers on SNG's system (“Shippers”) for binding bids of firm transportation service ("FT") for seamless capacity through the Tennessee Gas Pipeline Company L.L.C. (“TGP”) Mississippi Crossing Project (“MSX”). SNG has executed a Precedent Agreement (“PA”) with TGP to provide this capacity. The maximum volume available to be awarded is 1,400,000 Dth/d (“MSX Capacity”).
The MSX Capacity is available from TGP's 100 system near Greenville, Mississippi, TGP's 800 system near Isola, Mississippi, or Kosciusko, Mississippi to new interconnections off of MSX at (1) the TGP 500 system located in Lauderdale County, Mississippi, (2) SNG's south main line near Meridian, Mississippi, or (3) Transco Station 85. At least 20% of the awarded volume for each shipper shall be from receipt points near Kosciusko, and no more than 50% of the awarded volume per shipper can be from the TGP-Greenville receipt points. Transco Station 85 deliveries are limited to 1,000,000 Dth/d in aggregate for all shippers on MSX (combined SNG and TGP shippers) and proration may be necessary.
A map of MSX is provided at the end of this notice. Potential Shippers electing to submit bids into this Open Season shall have the option to allocate their requested MSX Capacity among the receipt points and delivery points set forth in the attached Service Request Form (“SRF”).
The commencement date for the MSX Capacity is anticipated to be 11/1/2028. The actual commencement date shall be subject to receipt of all required regulatory approvals and completion of construction of the expansion facilities associated with MSX.
The open season will commence as of the date and time this notice is posted and end at 4:00 p.m. CCT on December 2, 2024.
A portion of the MSX Capacity may be subject to precedent agreements with Shippers who are Anchor Shippers. Any shipper may become an Anchor Shipper in this open season if it has executed a precedent agreement for at least 200,000 Dth/d of incremental firm capacity with SNG prior to the end of this open season (on or before December 2, 2024). This is based on the total combined amount of MSX Capacity contracted by a Shipper even if a Shipper signs more than one PA.
SNG will not consider bids with terms of less than twenty (20) years and will not accept bids with a term greater than thirty (30) years.
Bid Evaluation Criteria:
If the MSX Capacity is required to be prorated, bids will first be awarded to Anchor Shippers. Then, SNG will award the bids among all other bidders for the remaining MSX Capacity on the basis of net present value ("NPV") determined with reference to the volume and term. In calculating the NPV, SNG will use a discounted cash flow factor of 11.2%. SNG will have the right to aggregate bids in a manner that generates the highest NPV to SNG. Comparable winning bids with the same NPV that cannot be awarded in full will be awarded on a pro rata basis. Shippers should indicate in their bids the minimum volume of expansion capacity they are willing to take in the event the full contract quantity of the bid is not available or if SNG must prorate the bids.
SNG reserves the right not to accept, in a not unduly discriminatory manner among similarly situated bids, any bid that is (i) uneconomical to SNG; (ii) that would require SNG to subscribe to additional MSX Capacity above the level which SNG has secured in its Precedent Agreement with TGP; (iii) that does not meet the requirements of these Open Season guidelines; (iv) that contains unacceptable conditions or contingencies; or (v) that contains a start or end date outside the parameters stated above.
Shippers' bids into this Open Season will be contingent upon TGP's election to proceed with MSX. SNG will have no obligation to contract with Shippers for MSX Capacity in the event MSX does not go forward or SNG's PA with TGP terminates.
This will be an incrementally priced project with negotiated rates that will vary based on the location of the firm delivery point and the risk profile for MSX capital expenditure overruns. In addition to the reservation charge, Shippers shall pay applicable commodity charges, surcharges and fuel, including fuel for deliveries on MSX.
Only valid requests for service under the terms of SNG's tariff and under the terms of this Open Season will be considered and Shippers must be able to show that they are creditworthy consistent with SNG's guidelines for expansions. All bids will be considered binding, and, if accepted, SNG shall rely on Shipper's bid to subscribe to the MSX Capacity. All bidders will be obligated to execute a PA with SNG on or before December 4, 2024, incorporating the terms and conditions of Shipper's bid. Conditions precedent, as well as the negotiated rate and creditworthiness terms, will be negotiated as part of the PA. Shippers interested in becoming Anchor Shippers should indicate such interest to obtain Anchor Shipper benefits. SNG will require each Shipper to meet certain minimum financial criteria (the "Creditworthiness Test") in order to subscribe for the MSX Capacity.
Capacity Turnback:
There is no existing capacity path on SNG's system that qualifies for capacity turnback. This will be for new service on a new capacity path to be constructed on TGP's system.
Bid Submission:
Shippers may submit bids by completing the SRF attached to this Open Season and emailing it to FTServiceRequest@kindermorgan.com and Stephen_Holmes@kindermorgan.com.
On the SRF, Shippers should indicate the term (start and end date), volume (in Dth/d), receipt and delivery points along MSX's facilities, with the corresponding volume being bid. The receipt points will be as stated above.
SNG will take no longer than ten (10) business days to notify Shippers of bid awards. Shippers that have not executed a PA with SNG by the close of the open season will be required to do so no later than December 4, 2024 to be awarded MSX Capacity. Shippers may request a pro forma PA from SNG at any time during the Open Season. If you have any questions regarding the Open Season, please contact your Account Manager or Stephen Holmes in Business Development at 1-205-325-7420 or Stephen_Holmes@kindermorgan.com.
SNG Marketing
OPEN SEASON SERVICE REQUEST FORM
SNG CONTRACT FOR MSX CAPACITY
SOUTHERN NATURAL GAS COMPANY, L.L.C. ("SNG")
Email Bid To: FTServiceRequest@kindermorgan.com AND Stephen_Holmes@kindermorgan.com
A. Shipper Information:
Legal Name of Shipper:
Name of Requesting Party:
Title of Requesting Party:
DUNS Number:
Address:
Phone:
B. Capacity Bid:
Rate Schedule: FT
Requested Term Start Date: (11/1/2028)
Requested Term End Date:
(must be at least 20 years, but not more than 30 years from the Requested Term Start Date)
Maximum Delivery Quantity: Dth/day
Will Shipper accept an allocation of capacity if necessary __________ ("Yes" or "No")
Receipt Point(s)
Receipt Point Quantity (Dth/day)
Delivery Point(s)
Delivery Point Quantity (Dth/day)
*The sum of the delivery point quantities at the primary delivery location(s) must equal the MDQ.
C. Affiliated Shipper Bidding:
Please state whether any affiliate of Shipper is bidding into this same open season and, if so, the business purpose of each affiliated company: __________________________________________
______________________________________________________________________________
By submitting this binding bid to SNG, the Shipper certifies that (a) all information contained in the request is complete and accurate, (b) it satisfies, or will be able to satisfy, all the requirements of the Tariff and the Open Season notice, (c) the person submitting the bid has full authority to bind the Shipper, and (d) if Shipper and its affiliate are bidding into the same open season that Shipper has a different business purpose than its affiliate for entering into such open season. Shipper also understands that if its bid is awarded, it will not be included as a participant in MSX unless it executes a precedent agreement with SNG on or before December 4, 2024.
Signature
Name (please print)
Title
Telephone
E-mail