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Spectra Energy Signs Transportation Agreement with ConocoPhillips to Transport Rocky Mountain Natural Gas to the Northeast United States

May 21, 2008

An Expansion of the Texas Eastern System Will Bring New Supplies East

HOUSTON - Spectra Energy (NYSE: SE) and ConocoPhillips (NYSE: COP) have executed an agreement to deliver up to 395 million cubic feet per day of Rocky Mountain natural gas from the Clarington, Ohio, supply point to the Northeast United States by November 2010.

To transport this volume of Rockies supply eastward, Spectra Energy will expand its Texas Eastern Transmission pipeline system. The expansion, called the TEMAX Project, will create the infrastructure necessary to move ConocoPhillips’ supplies from Clarington to Station 195 on the Transcontinental Gas Pipeline Corporation (Transco) pipeline system near Delta, York County, Pa.

“At a time when significant new supplies are moving to the Northeast, we are ready to expand our Texas Eastern system so ConocoPhillips’ Rockies supply reaches the region as quickly and cost-effectively as possible,” said Bill Yardley, group vice president, Spectra Energy Transmission. “Our existing Texas Eastern footprint allows us to build right-sized projects, such as TEMAX, that carry additional natural gas into the region.”

“ConocoPhillips is pleased to work with Spectra Energy to secure additional transportation capacity to the Northeast,” said Will Hussey, senior vice president of Origination, ConocoPhillips Gas & Power. “With this capacity, we can diversify our natural gas supply portfolio and deliver expanded services to the Northeast markets.”

Texas Eastern has conducted extensive evaluations to determine the optimum facilities for the TEMAX Project so that the delivery of this new natural gas supply will have minimum impacts to landowners and the environment. The required new facilities will include approximately 33 miles of pipeline from Texas Eastern’s mainline in Marietta, Pa., to Transco’s Station 195 near Delta, Pa. The company will replace compressors with more efficient units at its existing compressor stations and add minimal pipeline loop adjacent to its existing corridor. The TEMAX Project is expected to cost in excess of $500 million.

Texas Eastern has initiated stakeholder outreach with landowners as well as public and government officials in anticipation of participating in the Federal Energy Regulatory Commission’s Pre-Filing Process. The Pre-Filing Process engages interested stakeholders early in the development of a project.

The Texas Eastern system has been operating in Ohio, Pennsylvania, and New Jersey for more than 60 years. Texas Eastern offers strategic interconnections to the interstate transmission network and will provide access to the proposed Steckman Ridge storage project in Bedford County, Pa. The system has expanded by more than 15 percent over the last six years and is now able to transport up to four billion cubic feet per day.

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 18,000 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.

ConocoPhillips is an integrated energy company with interests around the world. For more information, go to www.conocophillips.com.

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