Spectra Energy Finalizes Agreements For Gas Deliveries Into New York And New Jersey

February 2010 Vol. 237 No. 2

Spectra Energy Corp. has signed binding precedent agreements with Chesapeake Energy Corporation, Consolidated Edison and Statoil Natural Gas for an expansion of its existing Texas Eastern Transmission and Algonquin Gas Transmission pipeline systems to deliver natural gas supplies to the New Jersey and New York area.

These shippers’ commitment to this proposed project provides sufficient market support to proceed with the expansion. The project involves a 21-mile pipeline connecting Michigan Consolidated Gas Company at Belle River, MI to Union Gas Ltd. at the Dawn Hub. The pipeline would be capable of transporting up to 800 MMcf/d to the region and is targeted to be in service in late 2013.

Specific facilities design and related costs will be finalized following the results of the project’s open season, which will be announced shortly. However, aspects of the proposed expansion include:

  • construction of a 16-mile pipeline extension that connects Texas Eastern’s existing pipeline in Staten Island, to a new interconnect with Con Edison in New York City;
  • replacement of five miles of existing pipeline in New Jersey and New York with larger diameter pipeline, and
  • additional facilities on Spectra Energy’s existing Algonquin pipeline system.

The project will utilize existing utility corridors and rights-of-way to minimize the effects on landowners and the environment.