PrintNews Release
October 8, 2008
Spectra Energy Enters into Agreement to sell Nevis and Brazeau River Midstream Facilities to Keyera Facilities Income Fund
CALGARY, Alberta – Spectra Energy announced today that its wholly-owned subsidiary Spectra Energy Midstream has entered into an agreementwith Keyera Facilities Income Fund (Keyera) under which Spectra Energy Midstream has agreed to sell all of its interests in the Nevis and Brazeau River natural gas gathering and processing facilities to Keyera. Subject to receipt of required regulatory approvals and certain other conditions, the transaction is expected to close in the fourth quarter of 2008.
“Part of our plan when we took the Spectra Energy Income Fund private was to rationalize non core assets held by the fund. This sale represents the timely execution of that plan,” said Doug Bloom, president Spectra Energy Transmission West.
The assets to be sold consist of 87 (net) million cubic feet per day (mmcf/d) of sour gas processing capacity, an acid gas injection facility and an extensive sour gas gathering pipeline network at Brazeau River in Alberta, as well as 150 mmcf/d of sour gas processing, a natural gas liquid fractionation and storage facility, and 354 kilometres of low pressure gas gathering pipelines associated with Nevis in Alberta.
Spectra Energy Midstream currently holds a 100 percent ownership interest in the Nevis facilities located 30 kilometres west of Stettler, Alberta. The company has a minority ownership interest in a processing facility and some related gathering facilities (currently operated by Keyera) located at Brazeau River, 170 kilometres southwest of Edmonton, Alberta, and a 100 percent ownership interest in compression and certain other gathering facilities connected to the Brazeau River plant.
Spectra Energy does not expect to record a material gain or loss associated with this transaction.
About Spectra Energy
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 18,000 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, the largest natural gas gatherer and processor in the United States. For more information, visit www.spectraenergy.com.
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John Arensdorf
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