Spectra Energy Signs Precedent Agreements with Shippers For Pipeline Expansion To Deliver Rocky Mountain Natural Gas Supply to the Northeast
February 19, 2008
HOUSTON – Spectra Energy has signed precedent agreements with shippers on its Northern Bridge project, a proposed expansion of its Texas Eastern Transmission system to deliver Rocky Mountain natural gas to Northeast markets in the Mid-Atlantic and New England states seeking new sources of supply.
The Northern Bridge expansion project will transport up to 150 million cubic feet per day (Mmcf/d) of Rockies natural gas from the growing Clarington, Ohio, supply point to the Oakford / Delmont, Pa., region.
“Our Texas Eastern Transmission system is ideally positioned with a footprint that can be efficiently expanded to serve all key Northeast markets along its existing path from Ohio to New York,” said Bill Yardley, group vice president, Spectra Energy. “We are able to take advantage of the location and design of our Texas Eastern system to fully participate in the effort to make Rockies supply a reality for customers in the Northeast.”
Northern Bridge will build upon Spectra Energy’s strategy of cost-effectively developing its transportation infrastructure to direct new supplies of natural gas to the Northeast through incremental expansions that match the market demand.
Spectra Energy is also continuing to work with customers that expressed interest in its TIME III binding open season for transportation services downstream of Northern Bridge. TIME III will provide key Northeast markets with access to new Rockies supply through several receipt points including Clarington and Oakford as well as the proposed Steckman Ridge storage project in Bedford County, Pa.
During the last six years, Texas Eastern Transmission has expanded its system in the Northeast corridor by 15 percent and the system is now able to move more than 4 billion cubic feet per day (Bcf/d) from Ohio to the Northeast.
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, 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.
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