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Spectra Secures 650,000 Dth/d of Contracts for Bi-Directional Service on Tetco

Spectra Energy and Spectra Energy Partners Monday announced they have executed new long-term contracts to bi-directionally transport 650,000 Dth/d of natural gas on their Texas Eastern Transmission (Tetco) system to accommodate the growing manufacturing sector and liquefied natural gas (LNG) export market along the Louisiana and Texas coast.

The Gulf Markets Expansion Project would provide access to shale gas in the Marcellus, Utica and Eagle Ford plays for manufacturers and LNG exporters by reversing some of the compressor stations and other facilities along the Spectra Energy Tetco system. The Gulf project is a continuation of Houston-based Spectra Energy's efforts, including the TEAM 2014 and Ohio Pipeline Expansion Network (OPEN)  projects, to transform its Tetco mainline into a bi-directional system providing diverse supply access to Northeast, Southeast and Gulf Coast markets, according to Spectra.

Chevron and EQT Corp. have committed to a total of 600 MMcf/d for the TEAM project, which is scheduled for in-service in the fourth quarter of 2014 (see Shale Daily, April 13, 2012). The OPEN project would bring together the largest producer in Ohio (Chesapeake Energy), the largest power generator in the region (American Electric Power) and Tetco. It calls for the construction of 70 miles of new pipeline, which would add 1 Bcf/d. OPEN is targeted for operation by November 2014, Spectra said.

The Gulf Market Expansion Project will be built in phases: the first phase would transport 250,000 Dth/d as early as November 2016; phase two would bring an additional 400,000 Dth/d to these markets beginning in September 2017 and would ramp up through December 2018, according to Spectra Energy. A spokesman said the company planned to make a pre-filing with the Federal Energy Regulatory Commission in 2014, but added that he could not be more specific than that.

Five customers have signed contracts for long-term service on the Gulf Market Expansion Project: EQT (100,000 Dth/d, in-service 2016); GDF Suez S.S. (200,000 Dth/d, in service 2017); Mitsubishi Corp. (100,000 Dth/d, in-service 2017); MMGS, a subsidiary of Mitsui & Co. Ltd. (100,000 Dth/d, in-service 2017); and Range Resources, Appalachia LLC (100,000 Dth/d, in-service 2016).

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