OS2506-2 STX TO TEXOK AND STX TO STX

OPEN SEASON – OS2506-2

 

PROPOSAL 1: SOUTH TEXAS TO TEXOK

AND

PROPOSAL 2: SOUTH TEXAS TO SOUTH TEXAS

FTS TRANSPORTATION

AVAILABLE WITH SW OPTION

 

This is an Open Season (OS) pursuant to Section 5.1(c)(1) of the General Terms and Conditions (GT&C)of Natural Gas Pipeline Company of America LLC's (Natural's or NGPL's) FERC Gas Tariff (Tariff)for firm transportation capacity. Natural is offering two capacity proposals in this open season, set forth below.  Bidders may submit a bid in one or both proposals, in a manner consistent with NGPL's tariff procedures in GT&C Section 5.1(d). Bids may be submitted in either the SFV Rate Form or a fixed Negotiated Rate Form.

 

PROPOSAL 1: SOUTH TEXAS TO TEXOK

--------------

Firm capacity with a primary receipt point in Natural's South Texas Receipt Zone and a primary delivery point in Natural's Texok Delivery Zone (as further described in the Capacity Available Section below). As described below under Optional Services, the System-Wide Service (SW) Option will be included in the evaluation of bids received. 

 

CAPACITY AVAILABLE (Dth./day)/TERM  

----------------------------------

The following capacity is available for northbound flow from Segment 22 to Segment 26 beginning September 1, 2025 through October 31, 2025 and northbound flow from Segment 20 through Segment 22 to Segment 26 beginning November 1, 2025, through March 31, 2026. 

 

September 1, 2025 through September 30, 2025:   10,652 Dth       

October 1, 2025 through October 31, 2025:       33,519 Dth

November 1, 2025 through November 30, 2025:     125,542 Dth      

December 1, 2025 through March 31, 2026:        119,483 Dth      

 

Example of an acceptable bid submission shown below:

 

CONTRACT MDQ BID PERCENTAGE (%): 75%

 

This would result in a capacity allocation as follows^[1]:

 

September 1, 2025 through September 30, 2025:   7,989 Dth        

October 1, 2025 through October 31, 2025:       25,139 Dth

November 1, 2025 through November 30, 2025:     94,156 Dth       

December 1, 2025 through March 31, 2026:        89,612 Dth 

 

^[1] Any capacity allocations will be rounded down to the nearest Dth.

 

CURRENTLY AVAILABLE RECEIPT POINTS

------------------------

The following receipt points in Segment 20 and 22 are available for use as primary receipt points in this OS:  

     

LOC #   Primary Receipt Point Name              Segment         MDQ

----    ---------------------------             -------         ---

September 1, 2025 through October 31, 2025:

 

46725   T2 GAS/NGPL REFUGIO                      22             33,519

 

November 1, 2025 through March 31, 2026:

 

54849   WHISTLEP/NGPL WHISTLE REC NUECES         20             125,542

                                               

CURRENTLY AVAILABLE DELIVERY POINTS

-----------------------------------

The following delivery point in Segment 26 is available for use as a primary delivery point in this OS: 

 

LOC #   Primary Delivery Point Name    Segment        MDQ

----    ---------------------------    -------        ---

5579    KMTP/NGPL GOODRICH POLK        26             125,542

 

CURRENTLY APPLICABLE MAXIMUM MONTHLY BASE RESERVATION RATE FOR AVAILABLE CAPACITY FROM SOUTH TEXAS TO TEXOK:

------------------------------------------------------------------------- 

Without SW Option                              

Peak              Off-Peak                                          

$3.7900           $3.7900                                          

                                               

With SW Option                                 

Peak              Off-Peak

$7.4000           $6.5700

 

Monthly Base Rates are per Dth of Contract MDQ, and are exclusive of applicable surcharges.

 

PROPOSAL 2: SOUTH TEXAS TO SOUTH TEXAS

--------------

Firm capacity with a primary receipt point in Natural's South Texas Receipt Zone and a primary delivery point in Natural's South Texas Delivery Zone (as further described in the Capacity Available Section below). As described below under Optional Services, the System-Wide Service (SW) Option will be included in the evaluation of bids received. 

 

CAPACITY AVAILABLE (Dth./day)/TERM  

----------------------------------

50,000 Dth/d is available for southbound flow from Segment 20 to Segment 20 beginning August 1, 2025 through October 31, 2025. 

 

CURRENTLY AVAILABLE RECEIPT POINTS

------------------------

The following receipt point in Segment 20 is available for use as a primary receipt point in this OS:  

 

LOC #   Primary Receipt Point Name       Segment      MDQ

----    ---------------------------      -------      ---

3886    BANHUB/NGPL BANQUETTE HUB BI-DI    20         50,000

                                             

CURRENTLY AVAILABLE DELIVERY POINTS

-----------------------------------

The following delivery point in Segment 20 is available for use as a primary delivery point in this OS: 

 

LOC #   Primary Delivery Point Name       Segment     MDQ

----    ---------------------------       -------     ---

53776     VCP/NGPL MUSTANG M/L 1 NUECES    20          50,000             

  

CURRENTLY APPLICABLE MAXIMUM MONTHLY BASE RESERVATION RATE FOR AVAILABLE CAPACITY FROM SOUTH TEXAS TO SOUTH TEXAS:   

-------------------------------------- 

Without SW Option                              

Off-Peak                                          

$2.9700                                          

                                               

With SW Option                                 

Off-Peak

$6.1600 

 

Monthly Base Rates are per Dth of Contract MDQ, and are exclusive of applicable surcharges.

 

BID PARAMETERS

--------------

POSTING and BIDDING PERIOD: June 20, 2025 – June 25, 2025.

BID SUBMISSION: Bids must be received by Natural by 2:00 p.m. Central Time on June 25,2025.

 

Please send all bids to: NGPLMARKETING@KINDERMORGAN.COM. Only bids sent to this mailbox by the designated due date and time will be considered for award.

 

DISCOUNT RATE AND DATE TO WHICH BIDS ARE DISCOUNTED: 7.55%, discounted to August 1, 2025 which shall be the Discount Date as that term is used in this posting.

 

BID REQUIREMENTS AND OS TERMS AND CONDITIONS 

--------------------------------------------

BID RATE SECONDARY RECEIPT/DELIVERY POINTS

Capacity With or Without SW Option:

For any Proposal 1 and/or Proposal 2 capacity awarded to a bidder at a bid reservation rate that is less than the applicable maximum reservation rate set forth in Natural's Tariff, for capacity with or without the SW Option, as applicable, the bid reservation rate will apply only to the secondary receipt and delivery points in the zones traversed by the primary path.

OPTIONAL SERVICES

-----------------

The value of the SW Option is applicable to the bid evaluation of the capacity included in this OS, and therefore, the bid reservation rate for the SW option will be taken into account for bid evaluation purposes. 

 

BID REQUIREMENTS

----------------

Shipper may submit multiple bids, but each bid will be evaluated independently. No contingent bids will be accepted in this OS.

 

Any bid submitted for a specified rate equal to the applicable maximum Tariff rate shall be deemed to be a bid at the applicable maximum Tariff rate, as may be revised from time to time.

 

Bids may be submitted in the SFV Rate Form that is within the applicable minimum and maximum rates set forth in Natural's FERC Gas Tariff or in the form of a Negotiated Rate or Negotiated Rate Formula.  

 

All bids for Proposal 1 must include a term start date of September 1, 2025, and a term end date of March 31, 2026, with a bid MDQ percentage that is uniform for the entire term of the bid.

 

All bids for Proposal 2 must include a term start date of August 1, 2025, and a term end date of October 31, 2025, with a uniform MDQ for the entire term.            

 

CREDITWORTHINESS REQUIREMENT

----------------------------

All bidders must satisfy Natural's creditworthiness requirements, as stated in Section 16 of the GT&C of Natural's Tariff, prior to submitting a bid.  Any bid submitted which causes bidder to exceed bidder's pre-determined level of creditworthiness is deemed an invalid bid.  Potential bidders are encouraged to contact Natural's Credit Department prior to bid submittal to determine whether they have established sufficient credit for their bid.

 

COMMODITY CHARGES AND SURCHARGES

--------------------------------

The reservation rate included in any bid must be for the Base Reservation Rate only (including the SW Option rate, to the extent applicable), which is exclusive of all applicable surcharges.  Any applicable commodity charges and surcharges and reservation surcharges will not be included in the guaranteed revenue stream considered for bid evaluation purposes.  Advance Payments are separately discussed below.  In addition to the awarded Base Reservation Rate, the winning Bidder will pay all applicable commodity charges and surcharges and reservation surcharges at the applicable maximum rate contained in Natural's Tariff, as may be revised from time to time. 

 

FUEL AND GLU CHARGES

--------------------

The reservation rate included in any bid is exclusive of all applicable fuel gas (fuel) and gas lost and unaccounted for (GLU) charges.  Bidder will be required to pay any and all applicable fuel and GLU charges set forth in Natural's Tariff, as may be revised from time to time. 

 

QUANTITY LIMITATIONS/

AUTHORIZED OVERRUN SERVICE

---------------------------

For any capacity that may be awarded at a discounted rate, the bid rate shall only apply to firm daily delivery quantities, including any related capacity release quantities, up to the Bidder's awarded Contract MDQ as a result of any segmentation. Firm deliveries made on any day in excess of the applicable contract MDQ as a result of any segmentation, including any related capacity release quantities, shall be charged all applicable maximum rates, charges, and surcharges set forth in Natural's Tariff, unless otherwise provided.  Without limitation of the foregoing, all Authorized Overrun Service provided to the Awarded Bidder shall be billed at the applicable maximum Authorized Overrun Rate set forth in Natural's Tariff, as may be revised from time to time.

 

ADVANCE PAYMENTS

----------------

An Advance Payment will not increase the value of a bid received in this OS.

 

OBLIGATION TO AWARD CAPACITY

----------------------------

Natural is not obligated to award firm capacity based on the following types of bids pursuant to its Tariff (GT&C Section 5.1(d)(4)):

(1)  on any bid for a term of less than one year, under which service is to commence more than sixty (60) days following the close of the open season (e.g., winter only);

(2)  any bid for a term of one year or greater, under which service is to commence more than twelve (12) months following the close of the open season; and

(3)  any bid for a term which is not continuous from the commencement of service date to the termination of service date reflected in the bid.

 

Natural will not award capacity from just one proposal if shipper bid on both proposals; Natural will award at least a pro rata share under both proposals or none.

 

Shipper understands that capacity awarded per Proposal 1 and Proposal 2 will be contracted as separate FTS agreements.

 

BID EVALUATION METHODOLOGY

--------------------------

All bids in this OS will be evaluated using the NPV formula which is posted on Natural's internet website on the commencement date of the Posting and Bidding Period.  All bids will be discounted to the Discount Date for NPV purposes. Natural's internet website may be accessed at: https://pipeportal.kindermorgan.com/PortalUI/DefaultKM.aspx?TSP=NGPL. The NPV formula for evaluating bids was posted on April 17, 2020, on Natural's internet website under Informational Postings/Notices/Non-Critical and is titled “NET PRESENT VALUE FORMULA”.  

  

 

BID AGGREGATION 

---------------
In order to determine the successful Bidders, Natural shall aggregate acceptable bids (including prorated bids to the extent applicable) if aggregation would achieve the highest NPV in relation to the available capacity.  

 

DETERMINATION OF HIGHEST ECONOMIC VALUE AND PRORATIONING

--------------------------------------------------------

In any situation where the capacity associated with acceptable bids exceeds the available firm capacity, including situations in which the highest NPV is determined using bid aggregation, then any available capacity will be allocated among bids, up to the MDQ bid, to achieve the optimal solution (highest aggregate NPV for capacity available).  In order to determine the highest economic value of all acceptable bids received, Natural will calculate the NPV of all such bids in two ways: 1) assuming prorationing of bid capacity by one or more Bidders to the extent required to achieve the optimal solution regardless of any bid's stated minimum acceptable quantity and 2) assuming prorationing of bid capacity by all Bidders down to the minimum acceptable quantity set out in the respective bids.  If a bid indicates that the Bidder is not willing to prorate to the extent required by the optimal solution, the available capacity will first be allocated (Initial Allocation) among other bids which indicate that the Bidders are willing to prorate to the extent required by the optimal solution.  The Initial Allocation shall be consistent with the optimal solution for the Bidders participating in the Initial Allocation.  The Bidder(s) not willing to prorate to the extent required by the optimal solution will be afforded the opportunity (irrespective of any stated minimum acceptable quantity) to take any capacity, up to MDQ bid, not allocated to other Bidders under the Initial Allocation.  If allocation of capacity among Bidders in the preceding sentence is required, allocation will be implemented in order to achieve the optimal solution for the capacity remaining to be allocated (irrespective of any stated minimum acceptable quantity), provided that the quantity allocated to a Bidder may not exceed the MDQ bid by that Bidder.  In applying the above procedures, in the event that Natural receives two (2) or more acceptable bids or sets of acceptable bids for service, which produce the same NPV (and produce the highest aggregate NPV), then available capacity will be allocated prorata based on MDQ bid.

 

NPV TIEBREAKER METHODOLOGY

--------------------------

If a tie between bids or sets of bids remains at the end of the prorationing process, Natural will apply the Tiebreaker procedures set forth in Natural's Tariff at Section 5.1(d)(6) of the GT&C. 

 

RESERVATIONS

--------------------------

Natural reserves the right to clarify 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 Natural shall have no obligation to do so.

 

NATURAL GAS PIPELINE COMPANY OF AMERICA LLC

BID FORM FOR FTS CAPACITY

 

In order to be valid, a bid must contain all of the applicable information required by this Bid Form. Any bid submitted for a specified rate equal to the applicable maximum tariff rate shall be deemed to be a bid at the applicable maximum tariff rate, as may be revised from time to time.  

 

DATE  ____________________          – OS2506-2

 

BIDDER/SHIPPER NAME _________________________________________________

 

BIDDER/SHIPPER GID _________

 

Proposal 1 – SOUTH TEXAS TO TEXOK

 

    MONTHLY BASE RESERVATION RATE  

     OFF-PEAK RATE     PEAK RATE          

 

FTS _____________     _____________       

 

SW option (Yes/No)    _____________
(If this option is not selected, the bid will be deemed non-SW)  

 

RATE OPTION (SELECT ONE): SFV Rate _____ or Fixed Negotiated Rate _____
(If this option is not selected, the bid will be deemed to be an SFV Rate) 

TERM START DATE September 1, 2025   TERM END DATE March 31, 2026

 

CONTRACT MDQ BID PERCENTAGE (%)_____________

 

PRIMARY RECEIPT POINT(S) AND POINT MDQ(S)

 

                 LOC NAME                             LOC #      

 RECEIPT(S)    

      September 1, 2025 through October 31, 2025:

T2 GAS/NGPL REFUGIO                             46725

 

November 1, 2025 through March 31, 2026:

WHISTLEP/NGPL WHISTLE REC NUECES                54849

 

PRIMARY DELIVERY POINT(S) AND POINT MDQ(S)

 

                LOC NAME                               LOC#

 

DELIVERY(S)   KMTP/NGPL GOODRICH POLK                 5579

 

If Bidder will accept less than the Contract MDQ Bid Percentage, state the minimum acceptable percentage __________%.

 

Any capacity allocations will be rounded down to the nearest Dth as stated above.  

               

Proposal 2 – SOUTH TEXAS TO SOUTH TEXAS

 

    MONTHLY BASE RESERVATION RATE  

     OFF-PEAK RATE     

 

FTS _____________    

 

SW option (Yes/No)    _____________
(If this option is not selected, the bid will be deemed non-SW)  

 

RATE OPTION (SELECT ONE): SFV Rate _____ or Fixed Negotiated Rate _____
(If this option is not selected, the bid will be deemed to be an SFV Rate) 

 

TERM START DATE  AUGUST 1, 2025   TERM END DATE  OCTOBER 31, 2025

 

CONTRACT MDQ BID  _____________

 

PRIMARY RECEIPT POINT(S) AND POINT MDQ(S)

 

                 LOC NAME                       LOC #       LOC MDQ

 

  RECEIPT(S)     BANHUB/NGPL BANQUETTE HUB      3886       _________

 

PRIMARY DELIVERY POINT(S) AND POINT MDQ(S)

 

                LOC NAME                        LOC #       LOC MDQ

 

  DELIVERY(S)   VCP/NGPL MUSTANG M/L 1 NUECES   53776     _________

               

If Bidder will accept less than the Contract MDQ bid, state Minimum Acceptable MDQ _______________ or, as an alternative, the minimum acceptable percentage __________%.

 

If Bidder bids on both Proposals 1 and 2, state the minimum acceptable percentage that applies to both proposals_____%.

Shipper understands that capacity awarded per Proposal 1 and Proposal 2 will be contracted as separate FTS agreements.

Is Bidder an affiliate of Natural (Y/N): _________ 

 

_____________________   _____________________________

          NAME                   TITLE

 

_________________________

        DATE

 

Email bids to NGPLMARKETING@KINDERMORGAN.COM