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Spectra Energy Files Application with FERC to Expand Market Hub-Egan Natural Gas Storage Facility to 32 Bcf

February 21, 2007

HOUSTON – Spectra Energy has filed an application with the Federal Energy Regulatory Commission to add a fourth cavern at its Market Hub-Egan facility that will ultimately increase the natural gas storage facility’s working capacity by one third to 32 billion cubic feet.

Expansion plans at the Acadia Parish, La., facility include:

• Development of an 8 Bcf salt dome storage cavern;
• Increased header and interconnect capacity to support the marketing of the fourth cavern and offer customers access to LNG supply through anticipated regional LNG supply pipelines; and,
• Above-ground facilities that will expand Egan’s capability to offer customers a host of valuable hub services

The above-ground facilities are expected to be completed in the summer of 2009 with the fourth cavern capacity scheduled to be brought on in phases beginning in 2009.

“High-deliverability storage capacity is ideally suited to meet a host of market needs including ensuring supply reliability, meeting short term and long term balancing requirements, managing risk and capturing opportunities in today’s volatile gas market,” said Mark Fiedorek, group vice president, Spectra Energy. “Additionally, storage capacity is vital to managing the logistical and operational risk associated with the marketing of LNG supply.”

The proposed project is the next phase of an aggressive expansion plan at the Egan facility. Work currently under way includes a compression increase of 80 percent, or 23,000 horsepower, that will increase the cycling capacity of the facility when it goes into service in the third quarter of this year. Also under development is the addition of a third 8 Bcf cavern scheduled to reach its full capacity in 3Q 2008, bringing the total working capacity at the Egan facility to 24 billion cubic feet.

Along with this proposed Egan project, Spectra Energy plans to expand its Moss Bluff, Texas facility and to develop a site in Copiah County, Miss., doubling the Company’s salt-dome storage capacity from 35 Bcf to 70 Bcf in the next six years.

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.

Forward-Looking Statement

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 of planned capital expansions and the estimated capacity resulting from such expansions. 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 storage and other infrastructure projects; the timing and receipt of required regulatory approvals; and operational hazards inherent in the natural gas storage industry. These factors, as well as additional factors that could affect our forward-looking statements, are described under the headings "Risk Factors" and "Forward-Looking Statements" in our Form 10, filed with the Securities and Exchange Commission on December 6, 2006, which is 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.