Spectra Energy Corp. is proposing to expand its gas gathering system to accommodate growing production in the Grizzly Valley area of northeastern British Columbia.

The proposed project is part of a third phase of expansion related to the company’s Pine River facility and would allow for the transport of incremental raw gas to its Pine River Gas Plant near Chetwynd, BC.

“We’re encouraged by the exploration and development activity in the Grizzly Valley area and the requests from our customers for increased service capacity,” said Gary Weilinger, president of the BC Pipeline and BC Field Services divisions of Spectra.

The project would involve approximately 17 kilometers (10.6 miles) of pipeline running parallel to existing lines and would add gathering capacity in excess of 40 MMcf/d. Spectra has been performance-testing its Pine River plant and making operating adjustments to accommodate the increased delivery of gas.

The company filed a pipeline application for this facility expansion with the National Energy Board in December 2007 and said it expects the new line and associated facilities modifications within the Grizzly Valley operating area to be operational by November 2008.

Spectra has said it plans to spend about $1 billion on expansions (see Daily GPI, Feb. 7).

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