Spectra Energy's Algonquin Gas Transmission Files FERC Application for East to West Expansion Project
Project to Bring New, Incremental Supplies of LNG to Northeast United
HOUSTON, June 10 /PRNewswire-FirstCall/ -- Spectra Energy (NYSE: SE) subsidiary Algonquin Gas Transmission (Algonquin) today announced it has submitted an application to the Federal Energy Regulatory Commission (FERC) for its East to West Expansion Project. The project will direct significant new supplies of re-gasified liquefied natural gas (LNG) from the eastern end of the Algonquin system into high-growth markets in the Northeast United States, including New England, New York and New Jersey, by November 2009. (Logo: http://www.newscom.com/cgi-bin/prnh/20061030/CLM051LOGO ) One of five large-scale pipeline expansion projects Spectra Energy and its subsidiaries have underway in the region, the East to West Project will increase the Algonquin system's current transportation capacity by more than 746 million cubic feet per day. The project also provides the company the flexibility to reverse flow on its system, transforming traditional gas flow in the Northeast. This will offer added supply security for the region, more competitive pricing options, and increased operational flexibility for the overall system and interstate transmission grid. Algonquin has executed firm, long-term agreements with shippers, including suppliers and local distribution companies, for the full capacity amount. These shippers, and all existing customers, will be able to move natural gas from new supply sources to key markets, enabling them to market their gas not only on the Algonquin system, but also on interconnecting, third-party pipelines. The linking of multiple sources and markets will offer significant benefit to the entire Northeast market. The $380 million project will include upgrades to three existing compressor stations located in R.I., Conn. and N.J., and replacement of less than 17 miles of existing pipeline in Mass. and Conn. New facilities will include a compressor station to be located in Bristol County, Mass., and approximately 13 miles of pipeline in Norfolk County, Mass. Utilizing Algonquin's existing infrastructure and rights of way will minimize the project's affects on landowners, communities and the environment. Since September 2007, Algonquin has been participating in the FERC Pre- Filing Process to provide stakeholders with opportunities to review materials and offer input on the project. During this time, Algonquin representatives have met with many interested stakeholders and held a number of public meetings. "The Northeast region's demand for natural gas is expected to grow by 25 percent or more in the next five to ten years. We are closely focused on developing projects in the region that are sized and timed to respond to both supplier needs to move new volumes as well as market needs to gain access to new supplies," said Bill Yardley, group vice president, Spectra Energy Transmission. "Our existing systems offer ready access to all major Northeast markets and can be expanded quickly, efficiently and cost-effectively to deliver new supplies from diverse sources into the region," he said. Spectra Energy will invest $1.5 billion in natural gas projects in the Northeast between 2007 and 2009, which represents half of the company's $3 billion capital expenditures during that timeframe. Together these projects will increase transportation capacity in the Northeast by more than 2.5 billion cubic feet per day, enough natural gas to heat 25,000 homes for a year. 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, 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. A FORTUNE 500 company, 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 18,000 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.
SOURCE Spectra Energy
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