Spectra Gets FERC Approval to Expand PA Marcellus Pipeline

Spectra Energy has received Federal Energy Regulatory Commission (FERC) approval for their Texas Eastern Appalachia to Market (TEAM) 2012 pipeline expansion project which expands Texas Eastern’s existing pipeline system and allows them to deliver extra Marcellus Shale gas to the northeast market in the U.S. A map detailing the existing pipeline and the proposed upgrades is embedded below.

The Company said that the TEAM 2012 project involves installing additional pipeline and compression on Texas Eastern’s mainline system in Pennsylvania. When completed in the fourth quarter 2012, the expansion will provide additional capacity of up to 200 million cubic feet per day (Mmcf/d). Spectra Energy currently has signed binding agreements with Range Resources and Chesapeake Utilities for this firm transportation capacity.

"The FERC decision is an important milestone in this project, allowing us to commence construction," said Bob Riga, GM, Spectra Energy Transmission. "TEAM 2012 will further position Spectra Energy as a leading choice for natural gas producers in the emerging Marcellus Shale and Appalachian regions, giving them flexible transportation options for bringing their supplies to market."

Spectra Energy also reported that it is planning to install a pipeline interconnection from its facilities to the Columbia Gas Transmission facilities near Marietta, Penn.

"With the Texas Eastern system traversing the Appalachian supply region, our expansions can be readily scaled and sized as production ramps up. 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 Riga.

The Company noted that its TEAM 2012 is the first in a series of projects designed to move Marcellus shale and other Appalachian natural gas supplies from southwestern Pennsylvania, Ohio and West Virginia to various markets, including the Northeast. The company is currently developing several opportunities to move supplies from the Appalachian Basin shale plays to various existing and new markets.

Spectra Energy Corp is a natural gas infrastructure companies serving three key links in the natural gas value chain: gathering and processing, transmission and storage, and distribution.*

*Spectra Energy Press Release (Nov 30, 2011) – Spectra Energy Receives FERC Approval for Texas Eastern Appalachia to Market 2012 Expansion Project