HOUSTON, Dec. 20, 2010 /PRNewswire/ -- Spectra Energy Corp (NYSE : SE ) today filed an application with the Federal Energy Regulatory Commission (FERC) for the expansion of its Texas Eastern Transmission and Algonquin Gas Transmission interstate pipeline systems to transport new, critically needed natural gas supplies to high demand markets in northern New Jersey and New York City.
The New Jersey-New York Expansion Project, which will eliminate existing bottlenecks in the region's interstate transmission pipeline grid, will offer multiple benefits to the region, including:
- Transporting new, vitally needed natural gas supplies to new delivery points in the growing, high-demand New Jersey and New York metropolitan areas;
- Increasing the region's access to diverse, reliable supplies from multiple sources;
- Allowing for the immediate and future switching to clean-burning natural gas from less environmentally friendly fuels;
- Enabling the region to build for gas-fired electric generation and demand growth, including in the residential and commercial sectors; and
- Alleviating seasonal natural gas price volatility, resulting in an anticipated $140 million annual energy cost reduction in the New Jersey and New York metropolitan areas.
"Enhanced pipeline infrastructure and new natural gas supply options are critical to meeting the increasing demand for affordable, reliable energy in New Jersey and New York, and our project addresses both these issues," said Greg Ebel, president and chief executive officer, Spectra Energy Corp. "The region will have more energy security and is expected to see lower energy costs as a result of the expansion."
During the planning and construction phase of the project more than 5,200 direct and indirect jobs will be provided in and around the local host communities. Additionally, regional air quality improvements from increased natural gas use will eliminate an estimated 6 million tons per year of carbon dioxide – equivalent to eliminating the emissions of more than 1 million cars.
Since April 2010, Spectra Energy has been participating in the FERC Pre-Filing Process to provide stakeholders with critical opportunities to review materials, talk with company representatives and offer input on the project.
"In selecting our route, we held more than 300 meetings with property owners, interested parties, and local, state and federal officials to get their feedback. We listened to the communities' concerns, which led to numerous adjustments to the route. This is a critically important part of the process and helps ensure we develop the project the right way," said Ebel.
"The Northeast region's demand for natural gas is expected to steadily grow over the long-term, so 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," he continued.
The New Jersey-New York Project will include:
- Constructing approximately 15.5 miles of new pipeline, which will run through parts of Bayonne, Jersey City and offshore Hoboken in New Jersey, as well as parts of Staten Island and Manhattan in New York;
- Replacing approximately five miles of pipeline in Linden, New Jersey, and Staten Island, New York; and,
- Modifying existing facilities in New York, New Jersey and Connecticut.
To minimize effects to landowners, local communities and the environment, the current proposed route does not cross any residential properties and a significant portion utilizes existing rights-of-way.
With a capacity of 800 million cubic feet per day of natural gas, the project is fully subscribed with commitments for firm transportation service from Chesapeake Energy Marketing, Inc., Consolidated Edison Company of New York, Inc. and Statoil Natural Gas LLC.
The estimated $850 million project is expected to be in-service in November 2013.
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 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, approximately 305 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 is a member of both the Dow Jones Sustainability Index North America and the U.S. S&P 500 Carbon Disclosure Leadership Index. For more information, visit www.spectraenergy.com
SOURCE Spectra Energy Corp