East-to-West Project Latest Development in Long-Term Strategy; Additional
Projects Planned To Enhance Supply Diversity and Reliability
WALTHAM, Mass., Sept. 4 /CNW/ -- Spectra Energy, capitalizing on its
existing footprint in the Northeast natural gas market, plans to invest about
$1.5 billion - or half of its $3 billion in projected capital expenditures
over the next three years - in cost-effective expansions that will bring
incremental natural gas supplies to the growing New England, New York and New
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As new supplies enter the region this November and new infrastructure is
placed into service, the region will have unparalleled access to significant
sources of Eastern U.S. seaboard liquefied natural gas (LNG) and Western U.S.
"We're connecting supply from all compass points and moving it to the
Northeast region," said Fred Fowler, Spectra Energy president and CEO. "These
are real projects that offer customers supply choice and reliability, and will
bring competitive pricing to the region."
Spectra Energy has worked with LNG developers for the last several years
to advance projects to provide the growing Northeast market with access to new
diverse sources of both domestic and international supply options.
A significant advancement in increasing supply access to the market is
the company's proposed East-to-West Project, an expansion of the company's
Algonquin pipeline system that will bring more than 1 billion cubic feet per
day (Bcf/d) of eastern LNG-based supplies into Northeast markets.
Spectra Energy has executed binding agreements with suppliers and Local
Distribution Companies and has initiated the Federal Energy Regulatory
Commission approval process.
The East-to-West Project will allow Algonquin to reverse flow on its
system to transport critical LNG supplies from the Eastern seaboard to the New
England and Northeast markets and will transform traditional gas flow in the
Northeast. In addition to the high growth markets on Algonquin, these new
supplies will be able to access additional markets through existing
interconnects with Spectra Energy's Texas Eastern Pipeline and Maritimes &
Northeast Pipeline, as well as four other market area interstate pipelines.
The project, which will utilize existing infrastructure combined with new
pipeline and compression, is expected to be in service by Nov. 1, 2009.
Additional Northeast Projects Under Construction
With the demand for gas consumption in the Northeast and mid-Atlantic
region expected to grow by approximately 25 percent to more than 13 Bcf/d by
2015, Spectra Energy is currently constructing additional pipeline and storage
expansions in the region as part of its continuous Northeast strategy to
provide right-sized and well-timed projects to the market.
Northeast pipeline expansion projects currently under construction
include the Texas Eastern Incremental Market Expansion (TIME) II Project;
Algonquin Northeast Gateway Project, Algonquin Cape Cod Extension, Algonquin
Ramapo Expansion and Maritimes & Northeast Pipeline Phase IV Expansion Project
where Spectra Energy serves as the lead partner.
In addition, Spectra Energy has several additional northeast projects in
advanced stages of development including the Steckman Ridge storage project, a
joint venture between Spectra Energy and New Jersey Resources.
Last year, Spectra Energy also recognized the potential for Rocky
Mountain natural gas to move further east on its Texas Eastern pipeline system
and held a successful open season for a proposed "TEMAX" project.
As a result of conversations with potential shippers, Spectra Energy is
commencing an open season Thursday, September 6, for incremental pipeline
capacity from Clarington, Ohio, to the Oakford, Pa., area.
Named "Northern Bridge," this right-sized expansion of the existing Texas
Eastern infrastructure will allow producers access to several more interstate
pipeline and storage options that the Oakford area affords, and makes Rocky
Mountain supply a viable and timely alternative for Northeast markets.
The exact nature of the facilities will be determined by the results of
the open season. The capacity is expected to be 200 million to 500 million
cubic feet per day (MMcf/d) with an anticipated capital expenditure of $100
million to $150 million. The project is expected to be in service in late
The company also plans to explore the need for incremental pipeline
capacity from Oakford to the Northeast markets.
Spectra Energy Corp (NYSE: SE) is one of North America's premier natural
gas infrastructure 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, 265 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.
Forward-Looking Statements 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 our intentions, plans, expectations, assumptions and
beliefs about future events. This release includes forward-looking statements
concerning future developments at our facilities, including the anticipated
timing and amount of planned capital expansions and anticipated future natural
gas pipeline capacity as well as the demand for such capacity. Such statements
are subject to risks, uncertainties and other factors, many of which are
outside our control 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; and
fluctuations in the demand for natural gas in the markets serviced by the
described project. These factors, as well as additional factors that could
affect our forward-looking statements, are described in our Form 10-K, filed
with the Securities and Exchange Commission on April 2, 2007, and other
filings that we make 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
For further information:
For further information: Media, John Sheridan, +1-617-560-1444,
+1-713-627-4747 (24-hour media line), or Analysts, John Arensdorf,
+1-713-627-4600, both of Spectra Energy Corp Web Site: