News Release
October 1, 2007

Spectra Energy Expansion Offers Access to Rocky Mountain Natural Gas Supply and New Natural Gas Storage Opportunities

Binding Open Season for Time 3 Project Commences October 1

HOUSTON – Spectra Energy is offering customers in the Northeastern United States access to greater supplies of natural gas including new emerging Rocky Mountain supply and regional natural gas storage opportunities through a proposed expansion of its Texas Eastern Transmission system.

Building upon the company’s strategy to develop timely and appropriately sized projects that will help meet the demands of growing Northeast markets, Spectra Energy will expand the capacity of its Texas Eastern system through the Time 3 Project to provide many potential receipt points for supply to the growing region, including:

  • Existing natural gas storage fields in Oakford, Pa., and the proposed Steckman Ridge natural gas storage project in Bedford, Pa.;
  • Points to be created by its proposed Northern Bridge Project; and
  • Interconnections to numerous other natural gas pipelines.

“Time 3 will appeal to shippers who want to deliver supplies quickly and cost-effectively throughout the Northeast,” said Bill Yardley, group vice president for Spectra Energy. “This project continues our strategy to help bring greater supply reliability, diversity and security to consumers in New England and the Mid-Atlantic. We have the ability, experience and expertise to do this the right way.”

Spectra Energy is holding a binding open season for the Time 3 Project from October 1 through November 16, at 5 p.m. EST. For more information, contact Rob Hansen at (617) 560-1549.

Realizing the potential for increased supplies of Mid-Continent natural gas and the successful development of Rockies production, Spectra Energy last year held a successful non-binding open season called ‘TEMAX’.

The Time 3 Project is the second expansion of the Texas Eastern system proposed by Spectra Energy in response to the interest expressed in the ‘TEMAX’ open season to direct newly emerging U.S. natural gas to the Northeast. Last month, Spectra Energy announced its Northern Bridge Project, designed to move western supplies from Clarington, Ohio, to the Oakford area.

The Time 3 Project will expand the capacity of the Texas Eastern system from Oakford, Pa., to the Northeast markets through additional compression and pipeline looping. Existing rights of way will be utilized, where possible, to minimize impacts to communities and the environment. With an expected investment of approximately $300 million, the Time 3 Project is anticipated to be placed into service in late 2010.

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 on April 2, 2007, 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.

John Sheridan
(617) 560-1444
(713) 627-4747 (24-hour media line)

John Arensdorf
(713) 627-4600