Wednesday, January 2, 2008
Spectra Energy Projects Increase North American Gas Supplies
2 January 2008
Gas Processors Report
Frank Nieto
Spectra Energy placed 13 projects totaling approximately $660 million in order to meet demands for the North American 2007-2008 winter heating season. The projects, part of Spectra’s $1 billion expansion capital budget, will expand the company’s North American natural gas transmission system capacity by 1.6 Bcf/d and contribute roughly $75 million in EBITDA.
The company’s U.S. projects are concentrated in the Northeast, where demand for natural gas is increasing by roughly 1.3% a year, and the South.
Spectra’s projects in the Northeast -- the Northeast Gateway Lateral, TIME II and Cape Cod Extension – will supply the region with new volumes from East Coast LNG facilities and Western U.S. basins.
The Northeast Gateway Lateral, 16 miles of sub-sea pipeline off the coast of Massachusetts, will transfer up to 800 Mcf/d of natural gas to New England from Excelerate Energy’s LNG deepwater port.
The TIME II expansion involves replacing 27.8 miles of pipeline, adding four miles of new pipeline looping, building a new compressor station, and adding more compression at an existing station. The project is expected to add 150,000 Cf/d
In the South, Spectra Energy added compression at the Egan Storage facility in order to increase cycling capacity for customers.
The company’s Canadian projects included the TFEP Phase II Project in Southwestern Ontario, which increased the capacity of the Dawn-Trafalgar Pipeline system by approximately 480 Mcf/d. The project is part of a three-year plan to increase existing system capacity by 20%.
Further projects in Canada included the St. Clair Pool, the first storage project providing additional Dawn storage services; and Pine River Phase II, Aitken Creek Crossover, Valhalla Pipeline, West Doe Plant and Peace River Crossing, all of which expanded and upgraded the company’s Western Canadian gas gathering and processing systems.
