Spectra Energy Corp and Spectra Energy Partners Announce Agreements with Eastman Chemical Company for Continued, Long-Term Gas Transportation Service
HOUSTON, Jan. 14, 2013 /PRNewswire/ -- Spectra Energy Corp (NYSE: SE) and Spectra Energy Partners, LP (NYSE: SEP) announced today that their East Tennessee Natural Gas (ETNG) pipeline has executed agreements with Eastman Chemical Company to provide an additional 86 million cubic feet per day (Mmcf/d) of firm transportation capacity for 25 years to Eastman's Kingsport, Tennessee, facility. The projects have a combined capital cost of approximately $120 million and include modifying existing ETNG facilities and building a new 6.4-mile pipeline extension. Coupled with Eastman's current contracts, ETNG will provide 121 Mmcf/d of firm capacity to the Kingsport facility when the projects are completed.
"Eastman Chemical is a valued customer, and we are pleased to enhance natural gas transportation service to its Kingsport site," said Patti Fitzpatrick, vice president, marketing for ETNG. "Our East Tennessee Natural Gas system is well positioned to safely and reliably deliver clean-burning natural gas to Eastman's steam and electrical power generation facility, and these projects will provide Eastman with enhanced supply options as well as increased reliability."
The first project, for service of 25 Mmcf/d, is expected to begin in November 2013. The Kingsport Expansion Project, to provide 61 Mmcf/d of additional capacity, is anticipated to be in service during the first quarter of 2015. The projects are subject to approvals by the boards of directors of Spectra Energy Corp, Spectra Energy Partners and Eastman Chemical Company, as well as regulatory approvals.
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 more than 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's operations in the United States and Canada include more than 19,000 miles of transmission pipeline, approximately 305 billion cubic feet (Bcf) of storage, as well as natural gas gathering and processing, natural gas liquids and local distribution operations. 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 is a member of the Dow Jones Sustainability World and North America Indexes and the Carbon Disclosure Project's Global 500 and S&P 500 Carbon Disclosure Leadership Indexes. For more information, visit www.spectraenergy.com.
Spectra Energy Partners, LP (NYSE: SEP) is a Houston-based master limited partnership, formed by Spectra Energy Corp (NYSE: SE), that owns interests in natural gas transportation and storage assets in the United States, including more than 3,500 miles of transmission and gathering pipelines and approximately 57 Bcf of natural gas storage. These assets are capable of transporting 4.5 Bcf of natural gas per day from growing supply areas to high-demand markets.
SOURCE Spectra Energy Corp; Spectra Energy Partners, LP