New venture to provide supply reliability, security to northeast U.S.
HOUSTON and WALL, N.J., March 6 /CNW/ -- Spectra Energy and New Jersey
Resources have formed a new partnership to jointly develop and operate a
natural gas storage facility with the capacity to store in excess of 10
billion cubic feet of working natural gas for markets in Pennsylvania and the
Northeast United States.
(Logo: http://www.newscom.com/cgi-bin/prnh/20061030/CLM051LOGO )
Steckman Ridge, LP, the new venture owned equally by subsidiaries of
Spectra Energy and New Jersey Resources, has reached an agreement with
Pennsylvania General Energy Company, L.L.C. to acquire its depleted natural
gas field located in Bedford County, Pa. Steckman Ridge plans to convert the
field into a multi-cycle storage facility that will provide growing energy
markets in the Northeast and Mid-Atlantic with much needed supply security and
flexibility, especially during the winter months.
"Natural gas storage plays an important role in balancing the
complexities of supply and demand," said Martha Wyrsch, president and CEO of
Spectra Energy Transmission. "Given its capacity and strategic location, we
expect Steckman Ridge to be an integral part of the Northeast's energy future.
We look forward to bringing to this partnership our years of experience in
safely and successfully constructing and operating more than 250 billion cubic
feet of storage capacity."
"Steckman Ridge will offer additional reliability to the region, helping
customers manage their risks and opportunities in this volatile environment,"
said Laurence M. Downes, chairman and CEO of New Jersey Resources. "This
exciting venture is another example of our commitment to use our expertise to
grow in new and existing markets."
Steckman Ridge will hold an open season to accept requests for
nominations on the storage facility in the spring of this year, with an
anticipated in- service date in the first half of 2009. The partnership will
commence preliminary engineering studies in the coming months, and expects to
invest about $250 million in the project.
Spectra Energy Corp (NYSE: SE) is one of North America's premier pure
play natural gas midstream companies serving three key links in the natural
gas value chain: gathering and processing, transmission and storage, and
distribution. For close to a century, Spectra Energy and its predecessor
companies have developed critically important pipelines and related energy
infrastructure connecting natural gas supply sources to premium markets. Based
in Houston, Texas, the company operates in the United States and Canada
approximately 17,500 miles of transmission pipeline, 250 billion cubic feet of
storage, natural gas gathering and processing, natural gas liquids operations
and local distribution assets.
Spectra Energy Corp also has a 50 percent ownership in DCP Midstream, one
of the largest natural gas gatherers and processors in the United States.
Visit www.spectraenergy.com for more information.
New Jersey Resources (NYSE: NJR), a Fortune 1000 company and a member of
the Forbes Platinum 400, provides reliable retail and wholesale energy
services to customers in New Jersey and in states from the Gulf Coast to New
England, and Canada. Its principal subsidiary, New Jersey Natural Gas, is one
of the fastest-growing local distribution companies in the United States,
serving more than 474,000 customers in central and northern New Jersey. Other
major NJR subsidiaries include NJR Energy Services and NJR Home Services. NJR
Energy Services is a leader in the unregulated energy services market,
providing customer service and management of natural gas storage and capacity
assets. NJR Home Services offers retail customers heating, air conditioning
and appliance services. NJR's progress is a tribute to the more than 5,000
dedicated employees who have shared their expertise and focus on quality
through more than 50 years of serving customers and the community to make NJR
a leader in the competitive energy marketplace. For more information, visit
NJR's Web site at njliving.com.
This release includes "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Forward-looking statements represent Spectra Energy's
and New Jersey Resources' intentions, plans, expectations, assumptions and
beliefs about future events. This release includes forward-looking statements
concerning future capital developments, including the anticipated timing of
planned capital expansions and anticipated storage capacity resulting from
such expansions. Such statements are subject to risks, uncertainties and other
factors, many of which are outside the control of Spectra Energy and New
Jersey Resources and could cause actual results to differ materially from the
results expressed or implied by those forward-looking statements. Those
factors include: the timing and success of efforts to develop infrastructure
projects; the timing and receipt of required regulatory approvals; the timing
and receipt of sufficient capacity commitments for the described project;
fluctuations in the demand for natural gas in the markets serviced by the
described project; and geological uncertainties and limitations in the
described natural gas field. These factors, as well as additional factors that
could affect such forward-looking statements, are described in Spectra
Energy's and New Jersey Resources' filings with the SEC, which are available
at the SEC's website at www.sec.gov. In light of these risks, uncertainties
and assumptions, the events described in the forward-looking statements might
not occur or might occur to a different extent or at a different time than we
have described. We undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.
For further information:
For further information: Media - Gretchen Krueger of Spectra Energy,
+1-713-627-4072 or for 24 hour media line, +1-713-627-4747, or Michael Kinney
of New Jersey Resources, +1-732-938-1031; Analysts - John Arensdorf of
Spectra Energy, +1- 713-627-4600 or Dennis Puma of New Jersey Resources,
+1-732-938-1229 Web Site: http://www.spectraenergy.com