sng/eec expansion projects & sng seamless service · sng/eec expansion projects & sng...
TRANSCRIPT
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SNG/EEC Expansion Projects
& SNG Seamless Service
WebEx Training
November 15, 2016
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Agenda
• Update on Expansion Status
• Elba Express Company (“EEC”) Expansion Fuel
• Southern Natural Gas (“SNG”) Seamless Service Overview – Contracts for Expansion Capacity
– Capacity Release
– Rates and Fuel
• Seamless Nominations – Pathing and Route Indicator
– Fuel Examples
• Q&A
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Update on Expansion Projects
• In-service target is December 1, 2016
– The SNG facilities necessary to commence service are complete, but service is dependent on the start of SNG’s FT service on EEC
– EEC facilities are nearing completion for FT contract with SNG
– An update regarding EEC’s status will be provided on November 18
– We will try to provide the in-service notice by 4:00 p.m. two days prior to the effective date
• We may allow capacity release offers to be entered early for December 1, subject to recall
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EEC Expansion Service Fuel
• Separate expansion fuel rate required by FERC
– EEC filed 0.95% as gas retained for operations for expansion service (GRO (2016 Expansion))
• Existing North to South FT and IT shippers will pay the existing 0.69% fuel (GRO (North-to-South))
• All shippers pay the LAUF, currently 0.23%
• In summary, for December 2016 – May 2017
– Expansion shippers will provide 1.18% fuel
– Existing N-S FT and IT shippers will provide 0.92% fuel
• EEC files updated fuel rates June of each year
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SNG’s Seamless Expansion Service
• SNG will be an FT shipper on EEC and provide
seamless service to its expansion shippers
– 217,110 dth/d Transportation Demand (“TD”) initially
– 242,351 dth/d TD effective 6/1/17
• EEC points and segments will be set up as Zone
3 points and segments on SNG Point Nbr Point Name Seg Nbr
938510 TRNSCO/EEC Z4 HART 200
938610 TRNSCO/EEC Z5 ANDERSON 200
938200 SO CO/EEC PLANT MCINTOSH EFFINGHAM 250
938300 EFFINGHM/EEC PLANT EFFINGHAM 250
938000 SLNG/EEC CHATHAM 270
938800 DCGT/EEC PORT WENTWORTH CHATHAM 270
606360 EEC/SNG CYPRESS EFFINGHAM 599
938850 EEC/SNG PT WENTWORTH CHATHAM 699
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SNG’s Seamless Expansion Service (cont’d)
• SNG’s firm expansion shippers will have capacity rights through the applicable EEC and SNG segments from their primary receipt PINs to their primary delivery PINs – Expansion shippers will nominate on their SNG expansion
contract from the Transco interconnect(s) for delivery on SNG (1 nomination across 2 pipelines, i.e., “seamless”)
– SNG will then submit the corresponding nominations to EEC on behalf of its shippers
• If SNG’s firm expansion shippers are not nominating all of their capacity on a day, then nominations on other contracts will be scheduled based on queue priority on SNG up to SNG’s TD on EEC
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Expansion Contracts & CR
• Expansion shippers have signed MFTE-SNG master contracts with an Exhibit C for the subscribed expansion capacity – If expansion capacity is released, the Replacement
Shipper must acquire it under an MFTE-SNG contract with an Exhibit C
• Exhibit C sets out the EEC charges the Replacement Shipper must pay to SNG if the EEC capacity is used, i.e.,
– The FERC approved fuel retention charges as set forth in EEC’s Tariff
– All other FERC approved surcharges and charges generally applicable to firm transportation service as set forth in EEC’s Tariff, except for the ACA surcharge
• To request an MFTE-SNG contract, email #[email protected]
• To execute the Contract and Exhibit C, select the Contracts folder, then select the MFTE-SNG agreement, and right click for the menu to select contract execution
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Expansion Contracts & CR (cont’d)
• Offer and Bid Rates – The filed maximum tariff rate for the expansion service is
$13.52/Dth of TD per month
– Shippers have the option to capacity release at a rate higher than the max tariff rate for a term of one year or less
– Any capacity release offers with a term greater than one year cannot be released at a rate greater than the max tariff rate
• Confirmed bids of released capacity will be awarded to the primary PINS
• After the capacity is awarded, the Replacement Shipper has the option to request a different PIN, but the choices are limited to in-the-path PINS, like any other acquired capacity
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Exhibit C Requirement for
Other Transportation Contracts
• Existing Master FT, Master FTNN and/or IT contracts with SNG may be used to submit seamless nominations from EEC/Transco receipt PINS on an out-of-path or IT basis
• Shipper must execute an amendment adding Exhibit C to its contract before nominations using EEC capacity will be accepted – Includes firm, acquired firm, and interruptible
transportation services – Email #[email protected]
specifying the Master contract(s) and/or IT contract to amend
• Please note that pool contracts on SNG are not eligible to nominate seamless service since they are not subject to transportation charges
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In Summary: Charges and Fuel
for Seamless Service Using EEC Capacity
• SNG charges are applicable: – Commodity and surcharges
• Transportation commodity for receipt zone to delivery zone – Zone matrix and maximization rules apply
• ACA and SCRM – ACA is effective Oct. 1 to Sept. 30 each year
– SCRM is effective Jan. 1 to Dec. 31 each year
• SNG Fuel is applicable: – Zone of delivery, intrazone, or eligible backhaul
– Winter fuel is effective Oct. 1 to Mar. 31 each year
– Summer fuel is effective Apr. 1 to Sept. 30 each year
• EEC fuel is applicable: – Initial expansion fuel of 1.18%
• EEC refiles its fuel rates to be effective June of each year
• At this time, EEC does not have FT commodity charges within TD, and a second ACA charge will not apply
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Nominations and Fuel Example
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SNG PINs on EEC for
Expansion Service • EEC PINs and Segments to be added as
nominatable points on SNG (Zone 3)
• Shippers should monitor the SNG EBB for the above segments in determining available capacity
Point Nbr Point Name Seg Nbr
938510 TRNSCO/EEC Z4 HART 200
938610 TRNSCO/EEC Z5 ANDERSON 200
938200 SO CO/EEC PLANT MCINTOSH EFFINGHAM 250
938300 EFFINGHM/EEC PLANT EFFINGHAM 250
938000 SLNG/EEC CHATHAM 270
938800 DCGT/EEC PORT WENTWORTH CHATHAM 270
606360 EEC/SNG CYPRESS EFFINGHAM 599
938850 EEC/SNG PT WENTWORTH CHATHAM 699
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Pathing of Seamless Nominations
• SNG will schedule the seamless nominations from EEC to SNG using the default path through EEC-SNG Port Wentworth
• Shippers with contracts pathed through the SNG-EEC Cypress Interconnect must include the route indicator “Cypress” in the nomination to receive primary to primary scheduling priority
• Capacity can be nominated outside of the primary capacity path and can be scheduled on an out-of-path basis if capacity is available
• Priorities through these virtual segments are evaluated no differently than any other segment on SNG. No bumping on ID3, EPSQ still retained, and capacity is available for nominations by shippers with an Exhibit C.
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Route Indicator
• SNG customers will have the ability to identify an
alternate segment path in Zone 3
• At the time of nominations, if you want to follow
the red path below - select “Cypress” from the
Route Indicator field
_______ Default Path
_______ Cypress Path
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Default Route
• Uses Segment 699
to cross over from
EEC into SNG
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Cypress Route
• Uses Segment 599 to
cross over from EEC
into SNG
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Route Indicator
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Seamless Nominations
• Transco Zone 4 Receipt PINSNG Zone 3 Delivery at the Seacoast PIN
• Cypress Route
• Fuel displays as a total pancaked fuel qty=187 Dth; Derived Fuel % of
0.01836
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Fuel Calculation
• Calculation steps:
– Determine the delivery volume on SNG
– For this example we will use 10,000 Dth
– Gross the delivery volume up by the SNG fuel
• 10,000 Dth / (1.00 - .0067 intrazone 3) = 10,067 Dth
– Use the calculated volume to apply the EEC fuel
• 10,067 Dth / (1.00 - .0118) = 10,187 Dth
– 10,187 Dth is the receipt volume to be nominated at
the Transco receipt point
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Fuel Example
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Determining Fuel
• SNG encourages shippers to use the Fuel
Calculator in DART
– From the Navigation Panel:
NominationsFuel Calculator
• Also, in the nomination screen, shipper
can input the quantity to be delivered on
SNG and DART will compute the total fuel
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Fuel Calculator
• Be sure to enter the Route Code
• Notice the derived Total Fuel % = 0.01836
– That is Total Fuel on both pipes as shown in the
nomination matrix
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Contacts for Assistance Account Managers
• Walter Coe
205-325-3708
• Lisa Guthrie
205-325-3816
• Jerry Nelson
205-325-7257
• On-Call Account Manager
1-800-315-0575
Contract Administration
• Adam Harris
713-420-2672
• Shari Jones
713-420-3710
• Contracts Hotline
713-420-4455
Scheduling
• Gina Mabry, Manager
713-420-3685
• Scheduling Hotline
713-420-7213
Email: [email protected]
• Katie Cornutt 713-420-5648
• Veronica Esparza 713-420-5213
• Phyllis Miller 713-420-3738
• Tracy Minter 713-420-7030
• Greg Pollard 713-420-7149
• Jeremy Rainwater 713-420-6385
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Questions?
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Thank You for Your Business