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


Jun 10, 2008, 01:00 ET from Spectra Energy

    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
     (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
     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