Houston-based Spectra Energy expects to bring into service approximately $1.5 billion in new pipeline, gas processing, storage and distribution projects this year, the company said Thursday.

Additionally, the company said it plans to spend more than $1 billion on projects per year over the 2008-2010 period. Spectra said it expects this spending will generate more than $500 million annually in incremental annual earnings before interest and taxes by 2011.

“In 2007 we demonstrated our ability to execute on our growth plan and at the same time reduced costs, maintained a strong balance sheet and met our financial targets,” CEO Fred Fowler told analysts and investors during a meeting in New York. “We also made significant strides in our three-year capital expansion plan, investing more than $1 billion in capital expenditures in 2007, and placing into service 13 strategic new projects with a total capital invested of about $650 million.”

The company reiterated its previously announced 2008 ongoing diluted earnings per share employee incentive target of $1.56/share, an 11% increase over the 2007 target.

“We had a stand-out first year in 2007, and we look forward to delivering a stronger year two,” said Fowler.

Earlier this month the company announced an open season for its proposed Bronco Pipeline, which would move gas from supply basins in the Rocky Mountains to the Pacific Northwest and California. The open season runs through Feb. 8 (see Daily GPI, Jan. 11).

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