Range Resources to Be Anchor Shipper for Spectra Energy’s TEAM Expansion Program

November 2009 Vol. 236 No. 11

Spectra Energy’s Texas Eastern Transmission has executed a binding agreement for a minimum of 150 Mmcf/d of firm transportation capacity with an affiliate of Range Resources Corporation, the leading Marcellus Shale producer, to bring new supplies of Appalachian natural gas to premium markets in the Northeast United States.

To keep pace with the rapidly emerging Appalachian production, Texas Eastern is proposing an expansion to increase its system’s capacity by up to 300 Mmcf/d, commencing in fourth quarter 2012. The expansion is referred to as the Texas Eastern Appalachia to Market Expansion (TEAM) Program.

With this agreement, Range Resources will become the TEAM program’s anchor customer.

Texas Eastern soon will announce a binding open season (TEAM 2012) for the remaining 150 Mmcf/d capacity for the targeted 2012 in service date. This open season would provide interested shippers with the opportunity to nominate transportation services from multiple existing and proposed new receipt points on the Texas Eastern system within the Appalachian production region to delivery points across Texas Eastern’s market area.

Based on market demand, Texas Eastern also may pursue a second phase of the TEAM Expansion Program and will initiate discussions to ascertain market interest through another open season (TEAM 2013) to be announced shortly. Targeted in service for the second phase expansion would be 2013.

“With the Texas Eastern system traversing the Appalachian supply region, our expansions can be readily scaled and sized as production ramps up. In addition, 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 Yardley.

The proposed TEAM expansions will utilize existing utility corridors and rights-of-way, where possible, in order to minimize the effects on landowners and the environment.