Spectra Energy Corp.
NYSE : SE

Spectra Energy Corp.

December 12, 2007 14:36 ET

Spectra Energy Proposes New Gathering Pipeline in British Columbia to Meet Producer Demand

CALGARY, ALBERTA--(Marketwire - Dec. 12, 2007) - Spectra Energy (NYSE:SE) is proposing to build a new natural gas gathering pipeline - the South Peace Pipeline - to connect a growing exploration area of northeast British Columbia (B.C.) with its existing processing and transportation infrastructure.

The proposed pipeline would form an extension to Spectra Energy's existing raw gas gathering system in the Fort St. John resource area of northeast B.C. to an area south of Spectra Energy's McMahon gas processing plant in Taylor, B.C. Natural gas reserves connected to the South Peace Pipeline would be transported for processing at the McMahon plant.

The approximately 85 kilometre South Peace Pipeline will have a transportation capacity in excess of 220 mmcf/d. It is expected that construction of this project will cost approximately $100 million.

"We are encouraged by the development potential of this emerging natural gas production area in northeast BC," said Gary Weilinger, president, BC Pipeline and BC Field Services Divisions. "We believe the production area south of the Peace River will complement our existing infrastructure already in place, providing highly reliable market access to new customers in the area, and ultimately increasing the utilization of our McMahon gas plant and surrounding facilities."

The proposed in-service date for the South Peace Pipeline is Q3 2009.

Spectra Energy will continue discussions with customers in order to solidify contractual arrangements and expects to have the pipeline capacity 100% contracted and commercial agreements in place by the time of filing a formal application with the National Energy Board in Q1 2008. For information on the above project, please contact Troy Adams, director, Business Development, at 403-699-1751.

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.

Contact Information

  • Spectra Energy Corp.
    Rosemary Silva
    Media
    (604) 488-8147 or (713) 627-4747 (24-hour media line)
    or
    Spectra Energy Corp.
    John Arensdorf
    Analysts
    (713) 627-4600
    Website: www.spectraenergy.com