Panhandle Eastern Pipe Line Company, LP

Request for PROPOSAL

 

REQUEST FOR PROPOSAL

 

NOTE: THIS RFP IS INTENDED FOR THE PURCHASE OF STORAGE SERVICES BY PANHANDLE, NOT THE SALE OF STORAGE SERVICES FROM PANHANDLE

 

Panhandle Eastern Pipe Line Company, LP (Panhandle) has contracts for storage expiring on March 31, 2026 and April 30, 2026.  Accordingly, Panhandle hereby solicits binding proposal(s) from all Bidders interested in providing either (i) up to 5,000,000 Dth of natural gas storage service to Panhandle with physical injection and withdrawal points located on Panhandle in Panhandle’s Field Zone upstream of Haven, Kansas, or (ii) up to 5,000,000 Dth of natural gas storage service to Panhandle with physical injection and withdrawal points located on Panhandle’s system downstream of Tuscola, Illinois.

 

Proposals are due no later than 12:01 pm CST on Thursday September 5, 2024.  Bidders will be notified within 5 business days of the status of their proposal.

 

SERVICE REQUIREMENTS FOR FIELD ZONE

 

Nature of Service:	Firm Storage
Term:	Minimum (5) five-year term beginning April 1, 2026. Longer terms may be considered
Storage Quantity (MAQ):	Up to 5,000,000 Dth
Injection Quantity (MDIQ):	Up to 35,000 Dth/d (April-October)
Withdrawal Quantity (MDWQ):	Up to 80,000 Dth/d (November-March)

 

Proposed injection and withdrawal points must be located on Panhandle and must be a physical meter.  Adequate firm capacity must be available at physical meter locations.  If upstream transportation is to be utilized to provide for the delivery and receipt at the physical Panhandle meter, verification that such upstream transportation is provided on a firm basis must be provided.  A 5-year history of any curtailments or interruptions on such upstream system must also be provided.

 

Storage Ratchets associated with this service should be at least as flexible as follows:

 

Injections

            100% of MDIQ until 60% of MAQ injected

            75% of MDIQ >60% until 80% of MAQ injected

            55% of MDIQ >80% of MAQ injected

 

Withdrawals

            100% of MDWQ until 70% of MAQ withdrawn

            60% of MDWQ >70% until 85% of MAQ withdrawn

            25% of MDWQ >85% of MAQ withdrawn

 

In addition, the nominations and scheduling of this service must be fully compliant with the procedures set out in Panhandle’s FERC Gas Tariff, General Terms and Conditions.

 

SERVICE REQUIREMENTS FOR DOWNSTREAM OF TUSCOLA

 

Nature of Service:	Firm Storage
Term:	Minimum (5) five-year term beginning April 1, 2026. Longer terms may be considered
Storage Quantity (MAQ):	Up to 5,000,000 Dth
Injection Quantity (MDIQ):	Up to 35,000 Dth/d (April-October)
Withdrawal Quantity (MDWQ):	Up to 80,000 Dth/d (November-March)

 

Proposed injection and withdrawal points must be located on Panhandle and must be a physical meter.  Adequate firm capacity must be available at physical meter locations. If upstream transportation is to be utilized to provide for the delivery and receipt at the physical Panhandle meter, verification that such upstream transportation is provided on a firm basis must be provided.  A 5-year history of any curtailments or interruptions on such upstream system must also be provided.

 

 

Storage Ratchets associated with this service should be at least as flexible as follows:

 

Injections

            100% of MDIQ until 60% of MAQ injected

            75% of MDIQ >60% until 80% of MAQ injected

            55% of MDIQ >80% of MAQ injected

 

Withdrawals

            100% of MDWQ until 70% of MAQ withdrawn

            60% of MDWQ >70% until 85% of MAQ withdrawn

            25% of MDWQ >85% of MAQ withdrawn

 

In addition, the nominations and scheduling of this service must be fully compliant with the procedures set out in Panhandle’s FERC Gas Tariff, General Terms and Conditions.

 

PROPOSAL REQUIREMENTS

 

In order for Panhandle to evaluate the proposals and reliability of storage services offered, Bidders should include the following information:

 

·         Full description of the storage service and associated rights, including but not limited to:

a)      Storage Quantity

b)      Injection Quantity

c)      Withdrawal Quantity

d)      Out of Season Injection/Withdrawal Rights

e)      Overrun Rights

f)       Injection/Withdrawal Ratchets (if applicable)

g)      Nomination and Schedule of Service

h)      Special characteristics of service such as No-Notice, etc.

i)       Upstream Transportation requirements and rights

 

·         Description of the applicable rate structure, including but not limited to:

a)      Reservation Charge(s)

b)      Injection Charge

c)      Withdrawal Charge

d)      Overrun Charges

e)      Out of Season Injection/Withdrawal Charges (if applicable)

f)       Applicable Surcharges

g)      Injection Fuel

h)      Withdrawal Fuel

i)       Any other applicable charges

 

·         List of primary and secondary injection and withdrawal points

·         Credit requirements

·         Copy of related tariff sheets (if applicable)

 

OTHER

 

For operational purposes, Bidders may not propose storage services in quantities less than 1,000,000 Dth.  Preference is given to storage proposals that provide for injection and withdrawals at all times of the year.  Panhandle shall consider all bids, but will determine the winning bids that result in the provision of the total storage capacity required.

 

Proposals are binding.

 

EVALUATION AND AWARDING OF PROPOSALS

 

Panhandle reserves the right to reject any and all proposals, or to accept nonconforming proposals in a not unduly discriminatory manner.  Evaluation will consider cost as well as Panhandle’s operational requirements and benefits.

 

CONTACT INFORMATION

 

Please direct questions and proposals to:

 

Joey Colton

Panhandle Eastern Pipe Line Company, LP

1300 Main St.

Houston, TX 77002

Office: (713) 989-7266

Fax: (713) 989-1177

E-mail: joey.colton@energytransfer.com