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: 04/28/2025 2:26:29PM	Notice End Date/Time: 12/31/2025 9:00:00am
Post Date/Time: 4/28/2025 2:26:29 PM	Notice ID: 710676
Reqrd Rsp: 1	Rsp Date: 04/28/2025
Notice Stat Desc: INITIATE	Prior Notice:
Subject: Open Season Z1 Firm Transportation LT

Notice Text:

April 28, 2025

To All Southern Natural Gas Company Shippers

RE: Open Season Announced for Firm Transportation (FT)

This is to announce an open season to solicit binding bids for firm transportation service ("FT") for capacity on the Southern Natural Gas Company, L.L.C. (“SNG”) pipeline system from receipt points in the Kosciusko area in Segment 50 (PINS 651400, 49128, 609000) to various delivery locations in segment 40.

Approximately 5,400 Dth/d is available in segment 40, commencing October 1, 2025, and is subject to a prearranged bid at a negotiated rate.

The open season will commence as of the date and time this notice is posted and end at 1:00 p.m. CST on May 09, 2025.

The capacity available to be awarded may not be available in the same increments to all locations along SNG's north main line and may not be available along particular laterals or at certain delivery pins.

SNG reserves the right not to accept, in a not unduly discriminatory manner among similarly situated bids, any bid that is uneconomical to SNG; that would require the construction of facilities which are disproportionate in cost to the quantity bid; that does not meet the requirements of these open season guidelines; that contains unacceptable conditions or contingencies; or that contains a start date outside the parameters stated above. With the exception of any conditions precedent relating to receipt of regulatory approvals, Shippers must have removed all conditions to their bids by a date acceptable to SNG. SNG reserves the right to not accept bids at less than the maximum tariff rate. Only valid requests for service under the terms of SNG's tariff and under the terms of these open season guidelines will be considered and Shippers must be able to show that they are credit-worthy consistent with SNG's guidelines for expansions. SNG will require each shipper to meet minimum financial criteria (the “Creditworthiness Test”) in order to proceed with the expansion opportunity. All bids will be considered binding and, if accepted, SNG shall have the right to charge the winning bidder for the capacity awarded under the terms of the bid.

Shippers may submit bids to SNG for FT service by completing a standard transportation request form for FT service and emailing it to FTServiceRequest@kindermorgan.com. Please call your account manager if you need an 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), FT quantity (in Dth/day), rate (monthly reservation charge per Dth requested) and delivery pins being bid. The receipt pin will be the points described above. Only valid requests for service under the terms of SNG's Tariff will be considered. All bids will be considered binding and, if accepted, SNG shall have the right to charge the winning bidder for the capacity awarded under the terms of the bid. The firm capacity available to be awarded will be restricted to a uniform hourly flow rate.

SNG 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.

In calculating the net present value, SNG will use a discounted cash flow factor of 10.24%. SNG will have the right to aggregate bids in a manner that generates the highest net present value to SNG.

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 quantity of 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. 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.

SNG 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 SNG Tariff.

If you have any questions regarding the Open Season, please contact your Account Manager or Stephen Holmes in Business Development at 205-325-7420 or Stephen_Holmes@kindermorgan.com.

SNG Marketing