Spectra Energy Expects to Pay ~$100M for Ruptured PA Pipeline

Spectra blazeMDN felt that the big news today was word from Spectra Energy that their Access Northeast pipeline project is making excellent progress (see Spectra Energy 2Q16 – Access Northeast “Advancing Toward Execution”). However, a bit of news coming from Spectra disclosed on yesterday’s earnings call comes in at a close second. You may recall there was an explosion and fire in Spectra Energy’s Texas Eastern Transmission’s “Delmont Line 27” pipeline in May (see Texas Eastern Pipeline Explodes near Pittsburgh, Antis Celebrate). The explosion occurred in Salem Township (Westmoreland County), PA, about 30 miles east of Pittsburgh and knocked out four pipelines running through the same area. One man was seriously burned when his house caught on fire and was destroyed. Since that time we’ve tracked the story with a series of updates (see them here). One of the four lines affected was restored to service shortly after the blast. Our most recent update pegs a return to service for the other three pipelines sometime in November (see Ruptured TETCO Pipeline in PA Offline Until November). Until now, we didn’t have any numbers to talk about with respect to how much it’s costing Spectra to locate and fix the problem. Yesterday Spectra’s Chief Financial Officer, John Patrick Reddy, pegged the cost for investors, saying it could go as high as $100 million…

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