OPEN SEASON

2018-2020 Expansion Project

Multi-Year System Expansion

May 16, 2017

Overview

ESNG 2018-2020 Expansion Project Open Season  Package  PDF Download

Project: Eastern Shore Natural Gas Company (“Eastern Shore”) is pleased to announce a non-binding Open Season for its 2018-2020 Expansion Project (“Project”). Eastern Shore is proposing a multi-year system expansion that permits firm service capacity additions to be phased in, with proposed in-service dates of November 1, 2018, November 1, 2019 and November 1, 2020. Eastern Shore has received customer requests for capacity additions and has determined that new facilities will be required to meet these requests.

Benefits: By providing an opportunity for existing and potential shippers to request new or additional firm transportation service within Eastern Shore’s existing geographic footprint, this Project allows safe, reliable, efficient and economic natural gas to be transported within the Delmarva Peninsula.

Facilities: A phased-in approach for new firm transportation service will better serve Eastern Shore’s shippers by allowing more economical and efficient planning and construction of pipeline facilities in order to meet individual and aggregate shipper requirements. Additionally, this phased-in approach provides Eastern Shore’s shippers the ability to phase in transportation service as it is needed, rather than in a single year.

Location: Following is a map of Eastern Shore’s current system, consisting of 448 miles of pipeline:

OPEN SEASON MAP.jpg

Participation: If you are interested in participating in this non-binding Open Season, please review the information herein and then complete the online Open Season Shipper Nomination Form and submit it to Eastern Shore by Tuesday, June 6, 2017.

Project Design: Upon the close of the Open Season, Eastern Shore will reevaluate the Project’s preliminary design. Eastern Shore will then develop a Project design that is capable of accommodating the level of customer commitments received in a manner that would allow Eastern Shore to achieve the most economical project consistent with safety, operational, and environmental considerations. Eastern Shore reserves the right to structure the Project as single-year, multi-year, or a combination of both, as Eastern Shore determines necessary in its sole discretion. Eastern Shore also reserves the right to conduct additional open seasons in the future as necessary to support the Project or future projects.

Binding Precedent Agreements: If Eastern Shore decides to move forward with the Project, participants in the non-binding Open Season will be notified and will be expected to enter into binding Precedent Agreements on or before July 15, 2017. The Precedent Agreement becomes binding when it is fully executed by both Eastern Shore and the Open Season participant. Eastern Shore will revise the overall scope of the Project as necessary to reflect only those requests for new firm transportation service supported by properly executed Precedent Agreements.

Project Information At-a-Glance


Targeted in-service dates:

In-Service Targets The actual in-service dates are, however, subject to the timely issuance of all necessary regulatory authorizations, approvals and permits and the acceptance of them by Eastern Shore. Construction delays beyond Eastern Shore’s control may also affect the actual in-service date.
November 1, 2018
November 1, 2019
November 1, 2020

 

Non-Binding Open Season Subscription Period:   Tuesday, May 16, 2017 through Tuesday, June 6, 2017.
 
Service:  Firm transportation service from Eastern Shore’s existing Receipt Point(s) to Shippers’ requested Delivery Point(s).
 
Term:  The requested contract term for firm transportation service hereunder shall be a minimum of fifteen (15) years.  If a different term is desired, such term should be indicated on the Open Season Nomination Form.  Eastern Shore will evaluate alternative terms on a case-by-case basis, and may, in its sole discretion exercised on a not unduly discriminatory basis, accept other terms proposed by shippers participating in this Open Season.

Rate:  Preliminary rates will be developed based on the estimated cost of facilities required to
serve the aggregate firm transportation service requests submitted during this Open Season process.  Initial rates will be calculated based on the level of binding customer commitments received (as evidenced by executed Precedent Agreements) and the cost of the facilities required to serve the aggregate firm transportation service requests of all shippers executing Precedent Agreements.       

Open Season Process 


The Subscription Period for this Open Season will commence on May 16, 2017 and close at 5:00 p.m. EST on June 6, 2017. Eastern Shore may, in its sole discretion exercised on a not unduly discriminatory basis, consider requests received after the close of the Subscription Period only if such requests are determined to enhance the Project and can be accommodated without
adversely affecting the filing process and/or anticipated in-service dates.

The Subscription Period is necessitated by the target in-service dates. Parties interested in obtaining firm transportation service must submit an Open Season Shipper Nomination Form, Open Season Capacity Turn-Back Form (if applicable) and necessary financial information (if a new Shipper) no later than 5:00 pm EST on June 6, 2017.

Submit by one of the following:

  • Online Open Season Shipper Nomination Form Click Here
  • Online Open Season Capacity Turn-Back Form Click Here
  • Mail / Express Mail / Overnight Delivery to:

ESNG Open Season – 2018-2020 Expansion Project
Eastern Shore Natural Gas Company
1110 Forrest Avenue,  Suite 201
Dover, DE 19904

  • E-mail to:   jmayan@esng.com
  • Fax to: 302-734-6745 (Attention: Jackie Mayan)
New Shippers are required to provide certain financial information as set forth in Eastern Shore’s FERC Gas Tariff.  Eastern Shore reserves the right to request additional information as it deems necessary.

Eastern Shore reserves the right to make a final determination of the size, scope and cost of the Project as well as a final evaluation of the overall economics of the Project, and, in its sole discretion, decide whether or not to proceed. All participating parties will be notified of Eastern Shore’s final decision.

Contact for Additional Information:

Should you have any questions or require additional information regarding this Open Season, please do not hesitate to contact:

Jackie Mayan 
Sr. Manager, Commercial Business & Marketing
(302) 213-7293
JMayan@esng.com

 

Eastern Shore Background Information


Eastern Shore is an interstate natural gas pipeline company that has been serving the natural gas transportation needs of the Delmarva Peninsula since 1959.  Eastern Shore operates under the jurisdiction of the Federal Energy Regulatory Commission (“FERC”). 

Eastern Shore receives natural gas at four upstream interstate pipeline interconnections for transportation to local distribution companies, industrial customers, and electric power generation customers located in Delaware, Maryland, and Pennsylvania.  Eastern Shore’s pipeline system interconnects with Columbia Gas Transmission, LLC, in Daleville, Pennsylvania; with Transcontinental Gas Pipe Line Company, LLC, in Parkesburg, Pennsylvania, and Hockessin, Delaware; and with Texas Eastern Transmission, LP, near Honey Brook, Pennsylvania.

 

1 Note that all Open Season Nomination Forms submitted via the Online Form are considered authorized submissions of the open season participant.