Project to Connect Northeast B.C. Gas-Rich Basins to Potential LNG
Export Facility in Prince Rupert
VANCOUVER, Sept. 10, 2012 /CNW/ - Spectra Energy Corp (NYSE: SE) today announced that the company has
signed a Project Development Agreement with BG Group plc (LSE: BG.L) to
jointly develop plans for a new natural gas transportation system from
northeast B.C. to serve BG Group's potential liquefied natural gas
(LNG) export facility in Prince Rupert, on the province's northwest
coast. Spectra Energy and BG Group will each initially own a 50 percent
interest in the proposed transportation project. Spectra Energy will be
responsible for construction and operation and BG Group has agreed to
contract for all of the proposed capacity.
The approximately 850-kilometre (525 mile), large diameter natural gas
transportation system will begin in northeast B.C. and end at BG
Group's potential LNG export facility in Prince Rupert. The new
transportation system will be capable of transporting up to 4.2 billion
cubic feet per day of natural gas. The project also will connect with
the Spectra Energy system at Station 2 (southwest of Fort St. John), a
growing natural gas hub that collects supply from multiple areas of the
province and other supply basins in Western Canada.
"We are excited to be partnering with BG Group, a recognized world
leader in natural gas and more specifically, LNG," said Greg Ebel,
president and chief executive officer, Spectra Energy. "This project
offers B.C. a unique opportunity to access new markets, strengthen its
energy infrastructure, engage stakeholders in economic growth and job
creation, and ultimately secure the province's position as a
competitive energy leader."
"Furthermore, today's announcement initiates our next wave of investment
opportunity in B.C. We are ideally positioned to create further value
for our investors by leveraging surplus B.C. natural gas supplies and
facilitating its export to high-demand markets in Asia. This, in turn,
will provide multiple opportunities for further investment in our
gathering and processing facilities in the province," added Ebel.
"For more than half a century, Spectra Energy has been a part of
communities in B.C.," said Doug Bloom, president, Spectra Energy
Transmission West. "This project will build on our expertise and track
record of delivering natural gas responsibly, listening to the needs of
Aboriginal and local communities, and protecting the environment, as we
help deliver on B.C.'s energy potential."
Working together with affected stakeholders and based on preliminary
assessments of environmental, historical, cultural and constructability
factors, early conceptual routes have been developed. Spectra Energy
and BG Group will continue engaging with interested and affected
stakeholders, including Aboriginal and local communities, environmental
organizations and regulatory agencies, to further refine the project
In addition, the companies will spend the next several years closely
conferring with stakeholders and working through the permitting process
for the proposed transportation system. This work will include filing a
project application with the B.C. Environmental Assessment Office.
Based on the results of these efforts, project construction is
currently expected to commence mid-decade, with service starting by the
end of the decade.
As part of this commitment to transparently communicate and foster
relationships in the province, Spectra Energy also announced "Energy
for BC" (www.energyforbc.ca). The new outreach initiative is designed to engage with stakeholders
on the jobs, revenues and environmental benefits that natural gas can
create in British Columbia.
Spectra Energy has operated in B.C. for more than half a century. The
company's natural gas transportation system in B.C. moves about 2.4
billion cubic feet of natural gas every day, employs more than 850 men
and women in B.C., pays nearly $65 million in property taxes and
contributes about $1 million annually in community investments across
the province. The company is nearing completion of a $1.5 billion B.C.
expansion program, which created more than 1,350 construction jobs and
resulted in $120 million in contracts with Aboriginal and local
contractors in the province.
Spectra Energy Corp (NYSE: SE), a FORTUNE 500 company, 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 more than a century,
Spectra Energy and its predecessor companies have developed critically
important pipelines and related infrastructure connecting natural gas
supply sources to premium markets. Based in Houston, Texas, the
company's operations in the United States and Canada include more than
19,000 miles of transmission pipeline, approximately 305 billion cubic
feet of storage, as well as natural gas gathering and processing,
natural gas liquids and local distribution operations. The company also
has a 50 percent ownership in DCP Midstream, one of the largest natural
gas gatherers and processors in the United States. Spectra Energy is a
member of the Dow Jones Sustainability World and North America Indexes
and the U.S. S&P 500 Carbon Disclosure Project's Carbon Disclosure
Leadership Index. For more information, visit: www.spectraenergy.com.
BG Group plc (LSE: BG.L) is a world leader in natural gas, with a
strategy focused on connecting competitively priced resources to
specific, high-value markets. Active in more than 20 countries on five
continents, BG Group has a broad portfolio of exploration and
production, liquefied natural gas (LNG) and transmission and
distribution business interests. It combines a deep understanding of
gas markets with a proven track record in finding and commercialising
reserves. For further information visit: www.bg-group.com.
Image with caption: "Conceptual Route of Proposed Spectra Energy and BG Group New Natural Gas Transportation System from Northeast British Columbia to Prince Rupert, on British Columbia's northwest coast. (CNW Group/Spectra Energy Corp.)". Image available at: http://photos.newswire.ca/images/download/20120910_C5107_PHOTO_EN_17599.jpg
SOURCE: Spectra Energy Corp.
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