Informational Postings :: Tennessee Gas Pipeline Company, L.L.C.

Informational Postings

Notice Detail

TSP/TSP Name: 1939164-TENNESSEE GAS PIPELINE	Critical: Y
Notice Type Desc (1): TSP CAPACITY OFFERING	Notice Type Desc (2): TSP CAP OFFERING
Notice Eff Date/Time: 10/16/2024 2:59:34PM	Notice End Date/Time: 12/31/2049 9:00:00am
Post Date/Time: 10/16/2024 2:59:34 PM	Notice ID: 392568
Reqrd Rsp: 1	Rsp Date: 10/16/2024
Notice Stat Desc: INITIATE	Prior Notice:
Subject: AVAILABLE FIRM CAPACITY OS #1399

Notice Text:

DATE: October 16, 2024 TIME: 3:00 PM CT

TO: ALL TENNESSEE GAS PIPELINE COMPANY, L.L.C. CUSTOMERS

RE: AVAILABLE FIRM CAPACITY (OPEN SEASON POSTING #1399)

Open Season Timeline

Tennessee Gas Pipeline Company, L.L.C. (“Tennessee”) is holding this Open Season in accordance with Article XXVI, Section 5 of the General Terms and Conditions of its FERC NGA Gas Tariff (as it may be in effect from time to time, the “Tariff”), commencing at 3:00 PM CT, Wednesday, October 16, 2024 and ending at 2:00 PM CT, Monday, October 21, 2024 (the “Open Season Period”). All capitalized terms that are used but not defined herein shall have the meanings ascribed to such terms in Tennessee's Tariff.

The capacity offered in this Open Season is the subject of a pre-arranged deal (the “Pre-Arranged Deal”) entered into pursuant to Article XXVI, Section 5.9 of the General Terms and Conditions of Tennessee's Tariff, the terms and conditions of which are disclosed below. Therefore, the customer under the Pre-Arranged Deal (the “Pre-Arranged Shipper”) has the right to match the highest net present value (“NPV”) bid received in this Open Season.

Proposal #1 Receipt Zone L to Delivery Zone L Capacity Proposed Contract Terms

Rate Schedule:	FT-A
Transportation Quantity (“TQ”):	The Pre-Arranged Deal is for 20,315 Dth/d. Tennessee will reject bids with quantities that vary during the term of the bid. Tennessee will reject bids with a TQ higher than the TQ listed above.
Term:	November 1, 2024 through March 31, 2025 Tennessee will reject bids with a commencement date prior to November 1, 2024, or a termination date later than March 31, 2025.
Primary Receipt Point(s):	420998 – POOLING PT – 800 LEG – ZONE L Competing bids for this proposal must be identical to the receipt point listed above.
Primary Delivery Point(s):	420373 – TRNSCO/TGP KINDER LA EXCH (B1 Competing bids for this proposal must be identical to the delivery point listed above.
Secondary Receipt Point(s) at which the rates specified below apply:	All Zone L Receipt Points within the Transportation Path, as defined in Tennessee's Tariff.
Secondary Delivery Point(s) at which the rates specified below apply:	All Zone L Delivery Points within the Transportation Path, as defined in Tennessee's Tariff.
Monthly Reservation Rate:	The Pre-Arranged Deal is at a Monthly Reservation Rate of $2.718 per Dth.
Commodity Rate for Primary and Secondary Deliveries:	The Pre-Arranged Deal is at Tennessee's applicable Base Commodity Rate per Dth.
Other Charges:	Shipper shall also pay ACA, applicable F&LR, EPCR charges, and all other applicable surcharges specified in Tennessee's Tariff.

Reservations

Without limiting or waiving any other rights that Tennessee may have with respect to this Open Season, Tennessee reserves the following rights:

1. To reject bids at less than Tennessee's applicable Base Reservation Rate or applicable Base Commodity Rate per Dth.

2. At any time during this Open Season, upon notice and in its sole discretion, to terminate this Open Season, to extend the Open Season Period, or to modify this Open Season.

3. To clarify and finalize bids containing non-specific and/or ambiguous bid information (including, without limitation, rate, term, and receipt or delivery points) or discrepancies in bid information, provided that Tennessee shall have no obligation to do so.

4. On a not unduly discriminatory basis, to reject any bid or service request that, in Tennessee's sole determination, is incomplete, is inconsistent with the terms of this Open Season, contains additions or modifications to the terms of this Open Season, is otherwise deficient in any respect (including failure to provide credit support as Tennessee deems necessary), or requests service outside the scope of this Open Season.

5. To reject any bid that does not specify capacity within the paths posted above.

6. To reject bids received after the Open Season Period.

7. To award capacity to mutually agreeable alternate receipt or delivery points if capacity is unavailable at the meters specified in any bid.

8. To award capacity for a quantity less than the bid quantity, if sufficient capacity is not available to award the entire bid quantity.

9. To reject any bid that will result in a reduction of reservation charges.

10. To reject negotiated rate bids.

11. To reject contingent bids.

Submission of Bids

In order to be considered eligible to be awarded capacity following this Open Season, each potential shipper must submit a bid that specifies terms, volumes, monthly rates, receipt points and delivery points that are consistent with the respective terms, volumes, monthly rates, receipt points and delivery points outlined above. All bids should refer to the Open Season number set forth above. Available capacity volumes are contingent upon mainline, meter and lateral capacity. Bids cannot exceed the stated maximum volumes. Parties interested in this capacity should submit binding Open Season Bid Forms by e-mailing their bid forms to TGPBidroom@kindermorgan.com. Any party may confirm Tennessee's receipt of its bid by contacting the Bidroom between 8 A.M. and 5 P.M. CT, Monday through Friday (unless such day is not a working day). All bids submitted during this Open Season may be replaced with higher net present value (“NPV”) bids during the Open Season Period. Bids cannot be replaced with lower NPV bids. Upon completion of this Open Season, all remaining bids will be considered binding until a successful bid(s) has been awarded.

The Pre-Arranged Deal and all of its terms and conditions are subject to Tennessee's Tariff and to all valid and applicable laws, orders, directives, rules, and regulations of duly constituted authorities having jurisdiction.

In accordance with Article XXVI, Section 5.9 of the General Terms and Conditions of Tennessee's Tariff, Tennessee is posting the terms of the Pre-Arranged Deal on DART in this Open Season for competitive bidding as provided herein, and the Pre-Arranged Shipper shall have a one-time right within 2 business days of notification to match any bids with a higher NPV in order to obtain the capacity.

The above-specified contract terms represent the minimum contract terms that Tennessee is willing to accept for the capacity underlying the respective Proposal(s). Bids for less than the minimum contract terms will be rejected.

In the event that, in this Open Season, a party submits a competitive bid(s) with a higher NPV/Dth than the Pre-Arranged Deal in total but for a lower volume than what was specified in the Pre-Arranged Deal, the Pre-Arranged Shipper, if electing to match, shall be required to match that lower volume, higher NPV/Dth bid. The remaining volume of the Pre-Arranged Deal that was not bid on in this Open Season shall be contracted for according to the terms of the Pre-Arranged Deal.

Evaluation Method

All final bids for each Proposal received during this Open Season will be evaluated on an NPV basis using the following factors:

NPV/Dth = En[R*(1/(1+i)**n)]/Dth

En = summation of months 1 through n (Sigma)

n = term in months

R = incremental monthly revenue

Dth = TQ of contract

i = monthly discount factor of 0.8333%

Tennessee reserves the right to accept any one bid or combination of bids that will result in the largest aggregate NPV for the aforementioned Proposal(s).

For further information, please contact:

Chris Brown (713) 420-6201

Britton Burr (713) 420-6838

Kevin Cofer (713) 420-7010

Allison Kaczynski (713) 420-2414

Scott Minear (713) 420-5177

Aaron O'Reilly (713) 420-2418

Jerimiah Ortiz (713) 420-2915

Greg Pollard (713) 420-7149

E-mail TGPBidroom@kindermorgan.com