Thursday, December 20, 2007
Spectra Energy Brings Additional Natural Gas Supply to North America New Pipeline and ...
... Storage Projects Enhance Energy Security and Reliability in Time for Winter Heating Season.
20 December 2007
PRNewswire (PRESS RELEASE)
Picked up by: Fox Business News, CNNMoney.com and Earthtimes
HOUSTON, Dec. 20 /PRNewswire-FirstCall/ -- As part of the more than $1 billion in expansion capital expected to be invested in 2007, Spectra Energy placed into service 13 projects in time to meet the demands of the 2007-2008 winter heating season. Representing an investment of approximately $660 million, the projects:
-- Expanded the capacity of Spectra Energy's North American natural gas transmission system by 1.6 billion cubic feet per day - enough energy to heat approximately 16,000 homes for one year; and
-- Will contribute earnings before interest and taxes (EBIT) of approximately $75 million for 2008 of which about $50 million will be incremental to 2007's EBIT contribution.
"We continue to execute on our plan to invest more than $3 billion in critical natural gas infrastructure through 2009," said Martha Wyrsch, president and CEO of Spectra Energy Transmission. "This significant investment will provide suppliers access to high value markets helping to ensure greater supply reliability and security across North America."
2007 U.S. Projects
Three projects placed into service this year will deliver substantial volumes of natural gas to the Northeast United States, where demand is rising by about 1.3 percent annually.
The Northeast Gateway Lateral, TIME II and Cape Cod Extension projects are part of Spectra Energy's ongoing strategy to connect the Northeast markets with new volumes from East Coast liquefied natural gas (LNG) facilities and Western U.S. basins, helping to increase supply diversity and competition in the region.
The largest of the three - the Northeast Gateway Lateral - is capable of transporting to the New England market up to approximately 800 million cubic feet a day (MMcf/d) of natural gas. Northeast Gateway, 16 miles of sub-sea pipeline off the coast of Massachusetts, will deliver natural gas sourced from Excelerate Energy's LNG deepwater port.
In the South, recognizing the critical role that natural gas storage is playing in North America's energy picture, Spectra Energy installed additional compression at the Egan Storage facility to increase cycling capacity for customers and enhanced its Moss Bluff Storage facility.
2007 Canadian Projects
Spectra Energy's Canadian focus has been on growing its operations through optimization of existing assets and customer-driven expansions.
Spectra Energy's Union Gas business expanded its infrastructure in Ontario with the St. Clair Energy Centre Pipeline and the TFEP Phase II Project. The TFEP Phase II Project in Southwestern Ontario boosts the capacity of the Dawn- Trafalgar Pipeline system by approximately 480 MMcf/d. This project is part of a three year expansion effort to increase existing system capacity by 20 percent.
In addition, MHP Canada has completed development of the St. Clair Pool, its first storage project providing additional Dawn storage services.
In Western Canada, several projects were put into service to expand and upgrade the gas gathering and processing systems. These projects include Pine River Phase II, Aitken Creek Crossover, Valhalla Pipeline, West Doe Plant and Peace River Crossing.
"As evidenced by the breadth of these projects, our systems are continually expanded to accommodate the needs of the markets we serve," Wyrsch said. "The investments planned for the next several years will further enhance our ability to respond to the markets' needs."
Spectra Energy Corp 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.
