September 3, 2025

To All Southern Natural Gas Company Shippers

RE: Open Season Announced for South mainline and North mainline Firm Transportation

This is to announce an open season for bids for 50,000dth/day short-term firm transportation capacity (“FT”) that is operationally available from October 1, 2025, through April 30, 2026, on the south mainline and north mainline of the Southern Natural Gas Company, L.L.C. ("Southern”) pipeline system.  45,000dth/d of south mainline capacity 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) or TGP Rose Hill (PIN #420546). This capacity is available to delivery pins as far east as Wrens (Segment 560). Of that 45,000/d available to Wrens up to 39,000 can be delivered to PINs south of Wrens (Segments 580, 590, 600, 610 and 615) and 7,500/d is available for delivery east of Wrens.  5,000dth/d of north mainline capacity is available from receipt pins as far west as those on Segment 50 which includes Tex Gas/SNG Kosciusko Attala (PIN #609000) and TET/SNG Kosciusko Attala (PIN #49128) and any receipt pins downstream of this location along Southern's north mainline. This capacity is available to delivery pins on the north mainline that are downstream of this location (Segments 90, 100, 110, 120, 130, 140, 150, 160 and 165), excluding pins located on the Huntsville and Chattanooga laterals (Segments 100, 170, 180, 190 and 195).

The capacity available to be awarded may not be available in the same increments to all locations along Southern's south system and may not be available along particular laterals or at certain receipt or delivery pins. Please note that this capacity is not available to Delivery pins on (i) Segments 500 and 510 north of Thomaston Compressor Station, or (ii) the South Georgia lateral with a flow direction from the south system. Any bid with a start date earlier than October 1, 2025, or for an ending date later than April 30, 2026, will be rejected. 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 ends at 2:00 p.m. CCT on September 16, 2025.

Shippers may submit bids to Southern 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 within the date range being offered), quantity (in dth/day), rate, delivery pins, and receipt pins 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 and the firm capacity available to be awarded will be restricted to a uniform hourly flow rate and deliveries will be at line pressure.  

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.  The NPV for the south mainline capacity and north mainline capacity will be awarded and calculated separately.  For either the south mainline capacity or north mainline capacity, Shippers may increase their NPV by bidding to contract for supplemental capacity on any part of the SNG system, which is available in other locations on the system, such as the capacity paths shown below.  The restriction on the term set forth above is limited to the 50,000dth/day of operationally available capacity, however, the term applicable to the supplemental capacity bids is from October 1, 2025, through September 30, 2026.  Any bids for supplemental capacity must be in uniform monthly quantities and Southern reserves the right to reject bids of supplemental capacity for less than five months.  In addition, Shippers currently receiving discounted FT service may increase the NPV of their bids by increasing their discounted rate for a period of time stated by the shipper in its bid.  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.

If you have any questions regarding the Open Season, please contact your Account Manager.

SNG Marketing