Two anchor shippers have signed binding agreements for capacity on Texas Eastern Transmission LP's (Tetco) TEAM 2014 expansion project to carry gas from Appalachia's shale plays to the Northeast, Midwest and southern United States, the Spectra Energy Corp. pipeline said.
"These commitments provide sufficient market support to proceed with the development of the TEAM 2014 project," the pipeline said, adding that a binding open season for additional capacity ends Feb. 17.
The names of the shippers were not disclosed.
The TEAM 2014 project is expected to enter service during the fourth quarter of 2014. The project reflects a fully scalable capacity expansion of up to 1.4 Bcf/d, including the volume of the two anchor shippers, the pipeline said. Because Tetco is expanding its existing system, the project can be sized to meet the needs of the two anchor shippers as well as additional shippers that may be identified during the open season, the pipeline said. The project is expected to cost about $500 million, depending upon results of the open season.
"This new project follows the successful TEAM 2012 expansion, which will go into service in fourth quarter this year and provide a total of 200 MMcf/d of new incremental capacity. Like TEAM 2012, this project is fully scalable to meet the transportation requirements of our shippers and offers substantial flexibility and market access," said Bill Yardley, group vice president for Spectra Energy Transmission Northeast.
"The TEAM projects, along with our recently announced Ohio Pipeline Energy Network (OPEN) project [see Shale Daily, Dec. 22, 2011], are key components in our approach to the Marcellus and Utica shale supply basins."