Tag Archives: Spectra Energy

Spectra Energy to add as much as 7.3 bcfd pipeline capacity by 2017

Spectra Energy has more than 3.3 bcfd of US natural gas pipeline expansions under way, with another 4 bcfd of capacity in development.

Spectra Energy projects currently under way include the New Jersey-New York Expansion Project, Texas Eastern Appalachian Market (TEAM 2014), Kingsport Projects, Ohio Pipeline Energy Network (OPEN), Algonquin Incremental Market (AIM Expansion), and Sabal Trail Transmission LLC.

The 800-MMcfd NJ-NY Expansion will extend Texas Eastern’s reach further into New Jersey and into New York City for the first time, connecting Marcellus shale supplies in northeastern Pennsylvania with a delivery point in Manhattan. Customers of the $1.2 billion project include Chesapeake Energy Corp., Consolidated Edison, and Statoil Natural Gas. Spectra Energy expects the project, currently 95% complete, to enter service next quarter. Construction includes 15.9 miles of 30-in. OD pipe extending from Staten Island to Manhattan.

TEAM 2014 (600 MMcfd) will deliver gas from Marcellus producer customers to the northeast, Midwest, and Henry Hub markets. Customers include Chevron Corp. and EQT. Spectra Energy expects TEAM 2014 to enter service fourth-quarter 2014 at a cost of $500 million. Preliminary construction includes 33.5 miles of 36-in. OD loop at seven sites at four compressor units with a total 77,000-hp net addition.

Spectra Energy’s Kingsport projects will provide additional supplies to Eastman Chemical Co.’s power generation plant in Kingsport, Tenn. Spectra Energy expects to have 25-MMcfd of expanded capacity operating by next quarter, with an addition 61 MMcfd in service by first-quarter 2015. The $120 million project includes replacing 5.8 miles of 8-in. OD pipe with 24-in. pipe on the East Tennessee pipeline and installing 5.4 miles of 16-in. loop and 4.1 miles of 16-in. pipe between the Fordtown compressor station and the Eastman plant.

OPEN will deliver 550 MMcfd of Ohio Marcellus and Utica shale gas to US Gulf Coast and east coast markets. The $500-million project is underpinned by anchor shipping agreements with Chesapeake Energy Marketing and another producer. The projects features 73 miles of 30-in. OD pipe the Kensington gas processing plant in the Utica shale to Texas Eastern’s Clarington compressor station. A new 18,800-hp compressor station will be added along this line, with 5 existing Texas Eastern stations totaling 139,450 hp reversed to east-west flow. All components are expected to be operational by second-half 2015.

The AIM Expansion will move 300 MMcfd of Marcellus production from the Stoney Point compressor station to the Algonquin City Gate outside Boston. At an estimated cost of $850 million, Spectra Energy expects the project to enter service second-half 2016 serving customers such as UIL Holdings, National Grid, NiSource, and Northeast Utilities. Additional horsepower at almost every compressor station and expanding portions of the line to 42-in. OD from 26-in. will provide the additional capacity.

Sabal Trail Transmission LLC is a joint venture of Spectra Energy and NextEra Energy Inc. to deliver more than 1 bcfd via 480 miles of 36-in. OD greenfield pipeline from Transco Station 85 to the Central Florida Hub. Florida Power & Light is the charter customer, with others expected before the $3 billion project enters service first-half 2017. The pipeline will include five compressor stations totaling 210,000 hp.

Transmission projects Spectra Energy has in development include:

  • Uniontown to Gas City (U2GC), Appalachia to Midwest, 425 MMcfd, in-service second-half 2015.
  • South Louisiana Expansion (Sola), expand Texas Eastern to South Louisiana industry, 600 MMcfd, first-half 2016.
  • Gulf Markets Expansion, Texas Eastern to US Gulf Coast, 650 MMcfd, second-half 2016-17.
  • Renaissance, Appalachia to Northern Georgia-Atlanta, 1.3 bcfd, first-half 2017.
  • NEXUS, Appalachia to Eastern Canada local distribution companies and power markets, 1 bcfd, second-half 2017.

Pipeline Editor – Oil & Gas Journal

SOURCE: http://www.ogj.com/articles/print/volume-111/issue-10/general-interest/spectra-energy-to-add-as-much-as-7-3-bcfd.html

Commission to hear proposal on regional pipeline

AUBURN, Ala. — County officials in eastern Alabama are set to discuss a proposed natural gas pipeline that would cross through parts of Alabama, Georgia and Florida.

Lee County commissioners are scheduled to meet Tuesday night to discuss the proposed project by Sabal Trail Transmission, a subsidiary of Spectra Energy Corp.

Logan Gray, a partner at Southern Strategy Group in Montgomery, is scheduled to give a presentation at Tuesday’s meeting, The Opelika-Auburn News reported.

The interstate pipeline system would cover an estimated 465 miles across portions of the three states, the Opelika newspaper reported.

A report on the project states that the plan is a response to a request for proposals from Florida Power & Light Co. to provide natural gas transportation for its power generation needs by May 2017.

The estimated $3 billion project is currently in the early developmental stage and that FPL would likely award the project by July, according to the report. It also noted that Sabal Trail would seek out community response to the project as well as performing surveys to collect information.

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Bid to block Spectra gas pipeline through Hudson County denied by judge

Spectra Energy Corp.’s plan to build a 16-mile pipeline to bring natural gas into Manhattan from New Jersey was cleared by a New York state judge who rejected an environmental group’s challenge to the project.

Justice Eileen A. Rakower denied a petition from Sane Energy Project and other groups to block construction of the pipeline, saying the Federal Energy Regulatory Commission has authority over the licensing of interstate natural gas lines, according to a ruling dated Jan. 16 and posted last week.

The Natural Gas Act gives the U.S. Court of Appeals jurisdiction to hear challenges involving the licensing of interstate natural gas pipelines, and federal law also preempts state and local environmental-review requirements for such pipelines, Rakower said. A proper challenge should be brought with the commission or in federal court, she said.

The $1.2 billion pipeline would bring 800 million cubic feet of gas a day from Linden, New Jersey, to Manhattan’s West Village, by way of Staten Island and Jersey City. Spectra has said the project, which started in July, may lower prices for customers in New Jersey and New York by bringing more gas from abundant shale fields such as the Marcellus region in Pennsylvania.

The commission said in March that the project would have a “less-than-significant” environmental effect. Spectra, based in Houston, completed a section of the pipeline between Jersey City and Manhattan, U.S. Transmission President Bill Yardley said at a Jan. 16 conference.

SOURCE: http://www.nj.com/business/index.ssf/2013/02/bid_to_block_spectra_gas_pipel.html

Spectra Energy to buy stake in two NGL pipelines in US

US-based natural gas infrastructure company Spectra Energy has entered an agreement with DCP Midstream and Phillips 66 to buy one-third stake in two natural gas liquids (NGL) pipelines in Texas, US.

The two under construction NGL pipelines, Sand Hills Pipeline and Southern Hills Pipeline, are currently being developed by DCP Midstream which is a 50-50 joint venture company between Spectra Energy and Phillips 66.

Upon closing of the deal, the three companies will each own one-third interest in the two pipelines and will equally contribute funds for the completion of Sand Hills and Southern Hills pipelines.

Spectra Energy did not disclose the value of the agreement but is expected to invest $700m to $800m in the two pipeline projects.

Spectra Energy president and chief executive officer Greg Ebel said the pipeline projects will complement the company’s current pipeline network in North America.

“As these NGL pipelines begin serving customers later this year and in 2013, they will directly add attractive, stable earnings and cash flow to Spectra Energy’s results,” Ebel added.

The Sand Hills is a 720 miles and 20in pipeline which will transports NGL from Permian Basin and Eagle Ford Shale to key markets on Gulf coast. The initial capacity of 200,000 barrels per day (bpd) can be increased to 350,000 bpd later.

It is expected to be operational in the second quarter of 2013.

The Southern Hills is a 900miles long pipeline which is being constructed to transport NGL from the Mid-Continent to Mont Belvieu in Texas.

It has an initial capacity of 150,000 bpd which can be expanded to 175,000 bpd. The pipeline is scheduled to begin services in mid-2013.

SOURCE: http://transportationandstorage.energy-business-review.com/news/spectra-energy-to-buy-stake-in-two-ngl-pipelines-in-us-021112

BG, Spectra Energy to set up gas pipeline JV in Canada

Gas pipeline operator Spectra Energy Corp said it will construct and operate a natural gas transportation system under a joint venture with BG Group PLC in British Columbia in Canada.

Spectra Energy said BG will contract for the full capacity of the pipeline, expected to be able to transport up to 4.2 billion cubic feet per day (bcfe/d) of natural gas.

Each company will own 50 percent of the project, Spectra said in a statement.

Spectra currently moves about 2.4 billion cubic feet of natural gas per day through its pipeline system in British Columbia.

The 525-mile, large-diameter pipeline will connect northeast British Columbia to BG Group’s potential liquefied natural gas (LNG) export facility in Prince Rupert on the British Columbia coast.

In May, Spectra had said it would spend $4.00 billion to $6.00 billion in British Columbia after 2015 to build projects that could include large pipelines connecting the Canadian province with energy-hungry Asian markets.

SOURCE: http://in.reuters.com/article/2012/09/10/spectraenergy-jointventure-idINL3E8KA4TM20120910

Manhattan Residents expressed fears for proposed 30-inch high pressure Natural Gas Pipeline

West Side residents expressed their fears at a Tuesday Community Board 2 forum about a proposed 30-inch, high-pressure, natural gas pipeline crossing the Hudson River from New Jersey to Gansevoort St.

The Spectra Energy pipeline between Linden, N.J., and the West Village has the support of the Bloomberg administration, which has mandated that thousands of residential furnaces using high-polluting No. 4 and No. 6 heating oil be converted in the next few years to relatively clean-burning natural gas.

Jason Mansfield, chairperson of the C.B. 2 Environmental, Public Health and Safety Committee, said the forum was intended to help draft the board’s response to the FERC review before the Oct. 31 deadline for public comment.

The federal agency is holding a meeting in Greenwich Village at P.S. 41, W. 11th St. at Sixth Ave., at 7 p.m. Thurs., Oct. 20, to take public testimony.

“This is an important meeting since your comments will be entered into the record and FERC can hear from you firsthand,” Mansfield said at opening of the Tuesday forum. The Oct. 4 pipeline forum was the committee’s third in two years.

Later this week the public will be able to file comments on the project directly with FERC online through the C.B. 2 Web site at www.CB2manhattan.org.

Representatives of Spectra Energy, Con Edison and the city Department of Environmental Protection spoke at length about the need for the pipeline and the safety measures to be employed in its construction and operation.

But opponents insisted they were not convinced that a new natural gas source was really needed, much less a large, high-pressure line with potential safety risks.

Regarding safety, one member of the audience demanded, “How can we trust you?” citing the Sept. 9, 2010, explosion and fire from Pacific Gas & Electric’s natural gas line that destroyed 53 homes, damaged 120 other buildings and killed one person in San Bruno, California, near San Francisco.

Spectra said the proposed pipeline would have specially made and inspected high-strength flexible pipe with coating inside and out, buried 3 feet or more with special fill. In operation, technicians monitoring operations via robotics could remotely shut down the line.

But C.B. 2 members noted that the board last year suggested that automatic shutoff valves might be more reliable than remote control shutoff. However, Spectra representatives at the Tuesday forum said technology for remote shutoff was better than automatic shutoff technology.

“A lightning strike could trigger an automatic shutoff,” said Ed Gonzales, Spectra project manager.

The Spectra pipeline under review would cross the southwest corner of Gansevoort Peninsula, cross the West Side Highway at Gansevoort St. and terminate on the west side of the proposed Whitney Museum property.

Con Edison would build its own high-pressure, 30-inch, natural gas line from the Gansevoort terminus of the Spectra pipeline along 10th Ave. for 1,500 feet to a Con Edison connection at 15th St. at 10th Ave.

But the Con Edison connector line is not part of the FERC environmental review. Cheryl Payne, the engineer in charge of Con Edison’s gas transmission, said the connector line has not been designed yet. But she said the materials and construction method would conform to the same high standards of the Spectra pipeline.

The Con Edison connector line would also use a remote shutoff system. Like the Spectra representative, Payne said an automatic shutoff system could be triggered by an event like lightning and needlessly leave large areas of the city without service.

C.B. 2’s Mansfield said later that the environmental review of the Spectra project should include Con Edison’s connector line.

“I don’t think they really made the case that the pipeline is needed,” he added. “It just wasn’t justified in view of its potential for catastrophic damage.”

Many of the project’s opponents at the Tuesday meeting had in mind the impending rules on natural gas production by high-volume hydrofracture drilling in New York State’s Southern Tier.

Spectra representatives said the company’s business was only natural gas transportation, not production. Indeed, the draft environmental impact statement indicates that the pipeline would be able to bring natural gas from the Marcellus Shale regions of southern New York and northern Pennsylvania into the Manhattan.

Catherine Skopic, an environmental advocate, told the Oct. 4 forum that it was time for investment and exploration of renewable resources like solar voltaic cells and wind energy instead off fossil fuel.

Opponents were also skeptical about the common assumption that natural gas is the cleanest of fossil fuels, if the environmental damage of hydrofracture drilling is included in the assumption.

Speaking to the fear of terrorism, Frank Eady, a former member of Community Board 4, raised the specter of Stuxnet, a computer program that he said was used to sabotage and set back Iran’s nuclear weapons program.

“That program is out there,” he warned.

Spectra representatives acknowledged that they didn’t know about Stuxnet, but Gonzales said the company monitored potential cyberspace danger.

Mav Moorhead, a Lower Manhattan resident angrily demanded, “Who will be accountable when the neighborhood blows up?” she said, adding, “We don’t have a hospital,” referring to the closing of St. Vincent’s.

SOURCE: http://www.thevillager.com/villager_441/gaspipeline.html