Spectra Energy unveils plans for new plant

Houston-based Spectra Energy has announced plans for a new 200 million cubic feet per day natural gas processing plant west of Dawson Creek, British Columbia, to serve producers in the growing Montney unconventional gas play.  The proposed plant will be built in two phases, with the first 100 million cubic feet of capacity coming on stream in late 2011, with the balance to be completed in early 2013.  Spectra, which has been processing gas in the area for 50 years, has said that the new plant's capacity is fully contracted and will be integrated into its existing gas gathering and processing infrastructure.  The company, which said the plant was being built as a response to customer demand, has not revealed how much the project will cost.  Gas processing takes raw natural gas and removes all of the various hydrocarbons and undesirable impurities in order to produce dry or purified natural gas that meets pipeline quality specifications.  Commenting on the announcement, Doug Bloom, president of Spectra Energy Transmission West, said: ÔÇ£The new plant is an important part of our growth strategy and our now about $1.5 billion investment opportunity in northeast British Columbia.ÔÇØ  SpectraÔÇÖs statement went on to say: ÔÇ£The expansion facilities are supported by long-term customer commitments and reinforce Spectra EnergyÔÇÖs commitment to be the supplier of choice for existing and future Montney area infrastructure development.ÔÇØ  North-eastern BC has seen growing activity as energy producers line up to tap the huge amount of gas trapped in the Montney shale formation.  Spectra plans to spend $1.5 billion in capital investments in the region over the next three years. It already employs 800 people in BC.  Based in Houston, Texas, Spectra operates approximately 19,100 miles of transmission pipeline and more than 285 billion cubic feet of storage in the US and Canada, as well as natural gas gathering and processing, natural gas liquids operations and local distribution assets. It employs a total of 7,300 people.  The company provides natural gas gathering and processing services through Western Canada Transmission and Processing, one of the largest processing businesses in Canada, and also has a 50 percent ownership in DCP Midstream, one of the largest natural gas gatherers and processors in the US. It also provides natural gas liquids distribution services in the US and Western Canada.  Spectra was created in 2007 from the natural gas businesses of Duke Energy.