Spectra Energy Signs Binding Precedent Agreements for Major Pipeline Project to Deliver New Natural Gas Supplies Into New Jersey
29 December 2009 - 8:00AM
PR Newswire (US)
HOUSTON, Dec. 28 /PRNewswire-FirstCall/ -- Spectra Energy Corp
(NYSE:SE) has signed binding precedent agreements with Chesapeake
Energy Corporation (Chesapeake, NYSE: CHK), Consolidated Edison
(Con Edison, NYSE: ED) and Statoil Natural Gas (Statoil, NYSE: STO)
for an expansion of its existing Texas Eastern Transmission (Texas
Eastern) and Algonquin Gas Transmission (Algonquin) pipeline
systems to deliver new, critically needed natural gas supplies to
the New Jersey and New York area. (Photo:
http://www.newscom.com/cgi-bin/prnh/20091228/CL30640) (Logo:
http://www.newscom.com/cgi-bin/prnh/20061030/CLM051LOGO) These
shippers' commitment to this proposed project provides sufficient
market support to proceed with the expansion. The proposed pipeline
would be capable of transporting up to 800 million cubic feet per
day of new natural gas supplies to the region and is targeted to be
in service in the fourth quarter 2013. Specific facilities design
and related costs will be finalized following the results of the
project's open season, which will be announced shortly. However,
aspects of the proposed expansion include: -- construction of a
new, 16-mile pipeline extension that connects Texas Eastern's
existing pipeline in Staten Island, N.Y., to a new interconnect
with Con Edison in New York City, NY; -- replacement of five miles
of existing pipeline in New Jersey and New York with larger
diameter pipeline, and -- additional facilities on Spectra Energy's
existing Algonquin pipeline system. "We're extremely pleased to be
working with Chesapeake, Con Edison and Statoil on this important
project. This is a project we have been pursuing for some time,
which will enhance natural gas service reliability in the Greater
New York City area and increase consumers' access to diverse and
abundant natural gas supplies," said Greg Ebel, president and chief
executive officer, Spectra Energy Corp. "With this expansion, we'll
be delivering clean-burning natural gas to heat homes and
businesses, and fuel much-needed gas-fired electric generation in
these critical markets." "This project aligns with our strategy to
develop and construct right-sized, well-timed expansion projects
for our customers in the Northeast and further extends our ability
to serve these key customers in New Jersey and New York, including
Manhattan," continued Ebel. Aubrey K. McClendon, Chesapeake's chief
executive officer, commented, "Chesapeake is pleased to be a key
shipper on Spectra Energy's new service to the New York City area,
an area of rapidly growing demand for clean-burning natural gas.
Chesapeake's industry-leading position in the Marcellus Shale
provides the perfect supply source to help energy consumers in the
New York City area reduce their dependence on expensive imported
oil and carbon-heavy coal. With the newfound abundance of domestic
natural gas through shale development unfolding in many areas of
the U.S., American energy consumers can now more fully embrace the
substantial economic and environmental benefits of natural gas."
"The new pipeline will help us meet the growing energy needs of our
area, strengthen the reliability of the natural gas system, and
improve air quality for all New Yorkers. The Spectra Energy project
will also help us achieve the goals of the Mayor's and Governor's
long-term energy and environmental goals as outlined in PlaNYC and
the state energy plan," said Kevin Burke, president, chairman and
chief executive officer, Con Edison. The project will utilize
existing utility corridors and rights-of-way where possible in
order to minimize the effects on landowners and the environment.
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 19,100 miles of transmission pipeline, more
than 285 billion cubic feet of storage, as well as natural gas
gathering and processing, natural gas liquids operations and local
distribution assets. The company also has a 50 percent ownership in
DCP Midstream, one of the largest natural gas gatherers and
processors in the United States. Spectra Energy was recently ranked
by FORTUNE as the world's "most admired" pipeline company. For more
information, visit http://www.spectraenergy.com/.
http://www.newscom.com/cgi-bin/prnh/20091228/CL30640
http://www.newscom.com/cgi-bin/prnh/20061030/CLM051LOGO
http://photoarchive.ap.org/ DATASOURCE: Spectra Energy Corp
CONTACT: Media, Toni Beck, +1-713-627-5720, +1-713-627-4747
(24-hour media line), Analysts, John Arensdorf, +1-713-627-4600 Web
Site: http://www.spectraenergy.com/
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