Spectra Energy's Texas Eastern Transmission Executes Binding Agreement with Range Resources to Move Appalachian Natural Gas to Northeast Markets Range Resources to Be Anchor Shipper for Texas Eastern Appalachia to Market (TEAM) Expansion Program
HOUSTON, Nov. 16 /PRNewswire-FirstCall/ -- Spectra Energy Corp's (NY SE: SE) Texas Eastern Transmission, LP (Texas Eastern) has executed a binding agreement for a minimum of 150 million cubic feet per day (Mmcf/d) of firm transportation capacity with an affiliate of Range Resources Corporation (NYSE: RRC), the leading Marcellus Shale producer to bring new supplies of Appalachian natural gas to premium markets in the Northeast United States.
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To keep pace with the rapidly emerging Appalachian production, Texas Eastern is proposing an expansion to increase its system's capacity by up to 300 Mmcf/d, commencing in fourth quarter 2012. The expansion is referred to as the Texas Eastern Appalachia to Market Expansion (TEAM) Program.
"We look forward to working with Range Resources to deliver its natural gas production to markets seeking more diverse, secure supplies," said Bill Yardley, group vice president, Spectra Energy Transmission, Northeast.
With this agreement, Range Resources will become the TEAM program's anchor customer.
Texas Eastern soon will announce a binding open season (TEAM 2012) for the remaining 150 Mmcf/d capacity for the targeted 2012 in service date. This open season would provide interested shippers with the opportunity to nominate transportation services from multiple existing and proposed new receipt points on the Texas Eastern system within the Appalachian production region to delivery points across Texas Eastern's market area.
Based on market demand, Texas Eastern also may pursue a second phase of the TEAM Expansion Program and will initiate discussions to ascertain market interest through another open season (TEAM 2013) to be announced shortly. Targeted in service for the second phase expansion would be 2013.
"With the Texas Eastern system traversing the Appalachian supply region, our expansions can be readily scaled and sized as production ramps up. In addition, our prime location in both the supply and market areas gives Spectra Energy the flexibility to offer more receipt and delivery options to customers," said Yardley.
The proposed TEAM expansions 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 (NY SE: 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 www.spectraenergy.com.
SOURCE Spectra Energy