Litigation Related To Previous Duke Energy Gas Contract Dispute
HOUSTON, Jan. 31 /CNW/ -- Spectra Energy Corp announced today that it has
agreed to settle outstanding litigation related to a contract dispute between
Citrus Trading Corp. (Citrus) and Spectra LNG Sales (formerly known as Duke
Energy LNG Sales, Inc.), a subsidiary of Spectra Energy.
(Logo: http://www.newscom.com/cgi-bin/prnh/20061030/CLM051LOGO )
The Citrus litigation was a liability assumed by Spectra Energy in
connection with its spinoff from Duke Energy Corp on Jan. 2, 2007.
Under the terms of the settlement agreement, Spectra Energy will pay
Citrus $100 million to settle a contract dispute that arose in connection with
a 1998 contract regarding the purchase and re-sale of liquefied natural gas.
In December 2006, Spectra Energy Capital LLC (formerly known as Duke
Capital LLC) had announced it would establish a reserve of $45 million
associated with this liability. As a result of the settlement reached
yesterday, the reserve recognized by Spectra Energy Capital in its fourth
quarter 2006 results of operations has increased to $100 million. Spectra
Energy Capital became a subsidiary of Spectra Energy on Jan. 1, 2007 in
conjunction with its separation from Duke Energy.
Spectra Energy admitted no liability or fault for the matters alleged in
"We are pleased to have settled this legacy contract dispute in a
rational manner," said Fred Fowler, chief executive officer, Spectra Energy.
"We believe this was the right course of action and outcome for our
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
(713) 627-4747 (24-hour media line)
For further information:
For further information: Media, Molly Boyd, +1-713-627-5923, or 24-hour
media line, +1-713-627-4747; or Analysts, John Arensdorf, +1-713-627-4600,
both for Spectra Energy Corp. Web Site: http://www.spectraenergy.com/