Floridian Natural Gas Storage Announces Non-Binding Open Season for Firm Gas Storage Service

April 2016, Vol. 243, No. 4

Floridian Natural Gas Storage Company, LLC (FGS) is soliciting non-binding bid proposals from interested parties for a firm liquefaction, storage, and redelivery by vaporization service to a new delivery point through an interconnect with Florida Gas Transmission Company (FGT) at a location at or near the southern terminus of FGT’s pipeline near Homestead, Florida.

FGS is offering in this solicitation up to 25,000 decatherms per day of capacity at the new FGS south Florida delivery point.  Customers who sign up for and utilize this new south Florida delivery point may be able to optimize existing capacity they hold on FGT through segmentation as well as through backhaul transportation on FGT to points in Florida currently short on pipeline capacity.

FGS received from the Federal Energy Regulatory Commission (FERC) an amended certificate of public convenience and necessity under Section 7(c) of the Natural Gas Act (NGA) in July of 2015 for the FGS facility in Indiantown, Florida (FGS Indiantown Facility), at which FGS will receive natural gas for liquefaction, storage, and redelivery by vaporization or as a liquid into customers’ trucks.

FGS intends to initially construct and bring into service at the FGS Indiantown Facility 1,000,000 Dt of storage (out of 5,000,000 Dt certificated), 25,000 Dt/day of liquefaction capacity (out of 100,000 Dt certificated), 100,000 Dt/day of vaporization capacity (out of 500,000 Dt certificated) and the two-bay truck loading facility.  Included in the initial construction are interconnections to both FGT and Gulfstream Natural Gas System, L.L.C. near Indiantown in Martin County, Florida.

FGS plans to file with the FERC an application for a certificate of public convenience and necessity under NGA Section 7(c) to construct the facilities required to provide the new delivery point to FGT at or near the pipeline’s southern terminus (FGS South Florida Facility).  As part of its application, FGS will file to amend its existing tariff to add the new South Florida delivery point.

The proposed in service date of the FGS Indiantown Facility and the FGS South Florida Facility is August 2018.

 The open season begins at 9 a.m. CST on April 26, 2016 and closes at 5 p.m. CST on May 31, 2016.  Those submitting non-binding bid proposals, for which there is no fee, will be expressing interest to contract, based on the specific commitments and terms set forth in the bid form submitted, for firm storage service with redelivery at South Florida.  The bid form must be completed in its entirety to be considered.

FGS will rank bid proposals according to net present value, with consideration given, in FGS’s sole discretion, to both the prospective customer’s creditworthiness and its operational flexibility and contractual arrangements with transporters.  FGS reserves the right to reject, in its sole discretion, any bid not acceptable to FGS.

FGS will contact bidders whose bid proposals are deemed acceptable within 5 business days of the end of the open season.  Thereafter FGS will enter into discussions with successful bidders with the objective of negotiating commercially reasonable terms resulting in the execution of binding precedent agreements as soon as possible after the conclusion of the open season.

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