Spectra Energy Announces Open Season To Provide New T-South Enhanced Firm Transportation Service

Published: 28-Jul-2009

By: Staff Writer Staff Writer Staff Writer

Spectra Energy Corp (Spectra Energy) has announced a binding open season for a proposed new transportation service on its transportation south (T-South) Zone 4 natural gas transmission facilities in southern British Columbia. The new service will provide for the transportation of natural gas from Spectra Energy’s compressor station 2 to the Kingsgate export point. Interested parties must submit a service request prior to the close of the open season period on August 21, 2009.

The export point is located at the interlink of the facilities of Foothills Pipe Lines (South British Columbia) and gas transmission Northwest (GTN).

“This new service offering will provide all of our customers with enhanced options”, said Rob Whitwham, vice president, pipeline, Spectra Energy Transmission (West). “Upstream customers will benefit from additional access to traditional markets, as well as markets not directly served by Spectra Energy’s facilities. Downstream customers will benefit from increased supply optionality from the rapidly growing production areas in northeast British Columbia.”

Two service options will be offered to prospective customers. Basic service will provide rights to transport gas on a firm service basis from the compressor station 2 receipt point to the Kingsgate delivery point, while premium service will offer rights to transport gas on a flexible firm basis from the compressor station 2 receipt point to the Kingsgate delivery point and/or the Huntington delivery point.

The new services are expected to be available by November 1, 2009, and are dependent on the company entering into an agreement with Terasen Gas Inc. (Terasen Gas) for up to 87 million cubic feet per day (MMcf/d) of firm transportation capacity on Terasen Gas’ Southern crossing pipeline, and Terasen Gas contracting for transportation service on the Foothills pipe lines (South British Columbia) system from Yahk, British Columbia to the Kingsgate export point.

“Terasen Gas is pleased to be working with Spectra Energy on this regional energy solution driven by the exciting new B.C. production developments,” said Cynthia DesBrisay, vice president, gas supply and transmission, Terasen Gas. “It is excellent news for our customers as these services help to improve infrastructure efficiency in the region.”

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