Spectra Energy Secures Two Shippers for Its Texas Eastern Appalachia to Market (TEAM) 2014 Expansion; Binding Open Season to Be Held

HOUSTON, Jan. 17, 2012 /PRNewswire/ -- Spectra Energy Corp's (NYSE: SE) Texas Eastern Transmission, LP (Texas Eastern) today announced it has reached binding agreements with two anchor shippers for its TEAM 2014 project, an expansion of its existing Texas Eastern system to deliver additional emerging Appalachian shale natural gas supplies to diverse markets in the Northeast, Midwest and Southern U.S. These commitments provide sufficient market support to proceed with the development of the TEAM 2014 project. Texas Eastern will solicit interest from additional shippers through a binding open season, which will commence today and end February 17, 2012. 

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TEAM 2014, with an estimated fourth quarter 2014 in-service date, reflects a fully scalable capacity expansion of up to 1.4 billion cubic feet per day, including the volume of the two anchor shippers. Because Texas Eastern is expanding its existing pipeline system, the expansion project can be sized to meet the needs of the two anchor shippers as well as additional shippers that may be identified during the binding open season. The company currently estimates the expansion will result in a capital investment of approximately $500 million, which could potentially increase based on the results of the open season.

Interested shippers will have the opportunity to nominate transportation services from multiple existing and proposed receipt points in West Virginia and southwestern Pennsylvania to multiple delivery points across the Northeast, Midwest and Southeast U.S. markets. Additional details will be included in the open season materials.

"We are pleased to reach agreements with the two anchor shippers for TEAM 2014 and expect additional interest from other shippers during the open season. This new project follows the successful TEAM 2012 expansion, which will go into service in fourth quarter this year and provide a total of 200 million cubic feet per day of new incremental capacity. Like TEAM 2012, this project is fully scalable to meet the transportation requirements of our shippers and offers substantial flexibility and market access," said Bill Yardley, group vice president, Spectra Energy Transmission, Northeast.

"The TEAM projects, along with our recently announced Ohio Pipeline Energy Network (OPEN) project, are key components in our approach to the Marcellus and Utica shale supply basins," Yardley added. "Connecting these growing supply basins to the premium markets we serve is a win-win for Spectra Energy and our shippers."     

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, over 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 the Dow Jones Sustainability World and North America Indexes and the U.S. S&P 500 Carbon Disclosure Project's Carbon Disclosure Leadership Index. For more information, visit www.spectraenergy.com.

SOURCE Spectra Energy Corp