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Canada: Spectra Energy, BG Sign Project Development Deal

Spectra Energy Corp announced that the company has signed a Project Development Agreement with BG Group to jointly develop plans for a new natural gas transportation system from northeast B.C. to serve BG Group’s potential liquefied natural gas (LNG) export facility in Prince Rupert, on the province’s northwest coast. Spectra Energy and BG Group will each initially own a 50 percent interest in the proposed transportation project.

Spectra Energy will be responsible for construction and operation and BG Group has agreed to contract for all of the proposed capacity.

The approximately 850-kilometre (525 mile), large diameter natural gas transportation system will begin in northeast B.C. and end at BG Group’s potential LNG export facility in Prince Rupert. The new transportation system will be capable of transporting up to 4.2 billion cubic feet per day of natural gas. The project also will connect with the Spectra Energy system at Station 2 (southwest of Fort St. John), a growing natural gas hub that collects supply from multiple areas of the province and other supply basins in Western Canada.

“We are excited to be partnering with BG Group, a recognized world leader in natural gas and more specifically, LNG,” said Greg Ebel, president and chief executive officer, Spectra Energy. “This project offers B.C. a unique opportunity to access new markets, strengthen its energy infrastructure, engage stakeholders in economic growth and job creation, and ultimately secure the province’s position as a competitive energy leader.”

“Furthermore, today’s announcement initiates our next wave of investment opportunity in B.C. We are ideally positioned to create further value for our investors by leveraging surplus B.C. natural gas supplies and facilitating its export to high-demand markets in Asia. This, in turn, will provide multiple opportunities for further investment in our gathering and processing facilities in the province,” added Ebel.

“For more than half a century, Spectra Energy has been a part of communities in B.C.,” said Doug Bloom, president, Spectra Energy Transmission West. “This project will build on our expertise and track record of delivering natural gas responsibly, listening to the needs of Aboriginal and local communities, and protecting the environment, as we help deliver on B.C.’s energy potential.”

Working together with affected stakeholders and based on preliminary assessments of environmental, historical, cultural and constructability factors, early conceptual routes have been developed. Spectra Energy and BG Group will continue engaging with interested and affected stakeholders, including Aboriginal and local communities, environmental organizations and regulatory agencies, to further refine the project route.

In addition, the companies will spend the next several years closely conferring with stakeholders and working through the permitting process for the proposed transportation system. This work will include filing a project application with the B.C. Environmental Assessment Office. Based on the results of these efforts, project construction is currently expected to commence mid-decade, with service starting by the end of the decade.

As part of this commitment to transparently communicate and foster relationships in the province, Spectra Energy also announced “Energy for BC”. The new outreach initiative is designed to engage with stakeholders on the jobs, revenues and environmental benefits that natural gas can create in British Columbia.

Spectra Energy, BG Sign Project Development Deal, Canada LNG World News.

USA: DTE Energy, Enbridge and Spectra Energy Team Up to Build Gas Pipeline

DTE Energy, Enbridge Inc. and Spectra Energy Corp announced the execution of a Memorandum of Understanding to jointly develop the NEXUS Gas Transmission (NGT) system, a project that will move growing supplies of Ohio Utica shale gas to markets in the U.S. Midwest, including Ohio and Michigan, and Ontario, Canada.

The proposed NGT project will originate in northeastern Ohio, include approximately 250 miles of large diameter pipe, and be capable of transporting one billion cubic feet per day of natural gas. The line will follow existing utility corridors to an interconnect in Michigan and utilize the existing Vector Pipeline system to reach the Ontario market. Upon completion of the project, Spectra Energy will become a 20-percent owner in Vector Pipeline, a joint venture between DTE Energy and Enbridge.

The new pipeline will serve local distribution companies, power generators and industrial users in the Ohio, Michigan and Ontario markets. It will include interconnects with Michigan Consolidated Gas Company, Consumers Energy and, through the Vector Pipeline, the Enbridge Tecumseh Gas Storage facility and Union Gas’ Dawn Hub, both in Ontario.

The Partners have received expressions of interest for a significant level of firm capacity to anchor the project. An open season for the project is planned for fourth quarter 2012, with a targeted in-service as early as November 2015, depending on final market demand and commitments.

DTE Energy, Enbridge and Spectra Energy Team Up to Build Gas Pipeline, USA LNG World News.

LETTER: ‘Career Politicians Like Markey are Holding Our Economy Back’

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By Susan Petroni

In a move that further exemplifies why we must redirect our government in order to restore our economy, U.S. Rep. Ed Markey has decided to fight the law of supply & demand. His consistent failure to understand basic economics damages our economy – in this instance, by stifling job creation and energy independence.
In a letter to Energy Secretary Steven Chu, Markey questioned the impact of allowing U.S. companies to export liquefied natural gas with the following statement:

‘I am worried that exporting America’s natural gas would raise energy costs for American consumers, reduce the global competitiveness of U.S. businesses, make us more dependent on foreign sources of energy, and slow our transition away from dirtier fuels.’

This statement is another example of how career politicians like Markey are holding our economy back. Recent advances in natural gas exploration have brought us to the point of oversupply in the U.S. market. This situation provides a unique opportunity to be a net energy exporter for LNG (liquefied natural gas). Being at a point of oversupply means that we have reached our capacity to consume LNG domestically. Mr. Markey’s proposal to artificially inhibit exports  will yield the precise outcome that he allegedly wants to avoid;  namely, reducing the global competitiveness of U.S. businesses.

Last year, in an $8 billion 20-year deal,  the Energy Department approved the first application by Cheniere Energy to export LNG to the UK.  This is a step in the right direction. Other countries will start sending their money to us instead of us sending our money overseas.

Natural gas is cleaner than oil. It is also more abundant than oil in the United States and it provides an excellent vehicle for job creation. As we speak, many LNG import sites across the U.S. largely sit idle as exporters (to the U.S.) shift their LNG supplies to emerging markets that will pay a premium for natural gas. Among the sites built on the anticipation of large LNG imports is SUEZ Energy North America located in Everett.

SUEZ is a natural gas importer and large contributor to Mr. Markey’s campaign.

Now imagine if the Everett LNG import site became an export site. Imagine hundreds of workers becoming employed in the conversion process from importer to exporter. Imagine job growth in and around Boston if it became a hub for energy exports, with every tanker that passes through Boston harbor another reminder of economic growth here in America. This isn’t a far fetched concept.
Right now, Dominion Resources Inc (D.N) is considering plans to build a liquefied natural gas export plant on the site of its existing import terminal at Cove Point, Maryland, by 2015. Southern Union Co. is launching similar plans at their Lake Charles, La., LNG import terminal as well.

What is standing in the way? Rep. Markey.

Career politicians like Markey (who was elected in 1976, the year I was born) are fundamentally incapable of grasping the negative effects of blocking incredible opportunities such as these.
In addition to his myopic view of energy development here in the U.S., Markey is engaged in a serious conflict of interest by sitting on both  the House Energy and Commerce Committee and the Natural Resources Committee, attempting to regulate the energy industry while accepting campaign contributions from its lobbyists.
Besides SUEZ Energy, Markey has accepted contributions from Chesapeake Energy, Interstate Natural Gas Assn of America, Spectra Energy and Washington Gas Light Co., all companies within the natural gas sector.

Accepting contributions from these companies is not illegal, but threatening them with adverse legislation, application delays or public scorn is tantamount to a shakedown. This is just the latest demonstration of Markey’s questionable ethics. There are numerous others, including examples relating to the solar and telecommunications industries.

For the sake of our national economy, and to help  the hard working men and women who are struggling to find a job in Massachusetts’ 5th District and across the country, it is high time that we voted Markey out of office. I look forward to being the candidate to make it happen.

Semon (pronounced Simone) is a candidate for Congress in 5th Congressional District. A graduate of the University of Massachusetts, Amherst – School of Management, Semon is a senior business analyst. He and his wife Nicole live in Lexington and recently had their first child Eleanor in  December.

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