March 12, 2009
CALGARY, AB – Spectra Energy Corp (NYSE: SE) today announced it has received firm customer commitments of 760 million cubic feet per day (mmcf/d) for gathering and processing capacity from seven producers operating in the Horn River basin. These commitments support Spectra Energy’s plan to expand gathering and processing capacity in Fort Nelson, British Columbia, to accommodate as much as 830 mmcf/d of incremental gas from the Horn River producers.
“Our plan involves staged expansions of our existing Fort Nelson area infrastructure to meet the scale, scope and timing of our customers’ needs,” said Greg Ebel, president and chief executive officer, Spectra Energy Corp. “We are responding to customer requirements to connect this important new supply source to southern and eastern markets by making optimal use of existing area infrastructure, thereby minimizing the need for new land and potential effects on the environment.”
The multi-phased expansion program would commence in 2009 and continue into 2012, and would include the reactivation of existing processing capacity at the Fort Nelson Gas Plant, looping and reconfiguration of area gathering and compression, and the addition of new processing capacity at Spectra Energy’s existing Cabin Lake compressor station. Discussions with other interested parties are continuing and construction of these facilities is subject to all customary regulatory and other approvals.
Spectra Energy has operated in the Fort Nelson area and been part of the local community for over forty years. The Fort Nelson Gas Plant is the largest sour gas processing plant in North America and is the only facility currently processing Horn River gas. This facility attracts gas from an extensive network of approximately 1000 kilometres of gathering pipelines which surround the Horn River producing basin.
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 nearly 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 operates in the United States and Canada approximately 18,300 miles of transmission pipeline, 270 billion cubic feet of storage, natural gas gathering and processing, natural gas liquids operations and local distribution assets. 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 was recently ranked by FORTUNE as the world’s “most admired” pipeline company. For more information, visit www.spectraenergy.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 our intentions, plans, expectations, assumptions and beliefs about future events. 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. Factors that could affect our forward-looking statements are described in our Form 10-K filed with the Securities and Exchange Commission, 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 otherwise.