Spectra Energy Partners has signed a precedent agreement with the Tennessee Valley Authority (TVA) for an expansion of its East Tennessee Natural Gas (ETNG) pipeline system to provide firm transportation service of up to 150 MMcf/d to TVA’s proposed 880 MW combined-cycle power plant in northeast Tennessee.

The scope of the Northeast Tennessee (NET) Project, which has an estimated capital cost of $135 million, includes expanding or modifying existing facilities on the ETNG system and building an 8.5-mile mainline extension that would generally follow TVA’s existing transmission line corridor.

The ETNG expansion, which is expected to be in service during the second half of 2011, is subject to Spectra Energy Corp. and Spectra Energy Partners board of directors approvals as well as regulatory approvals.

The new power plant was approved by the TVA board last June. The plant is to be constructed adjacent to the existing John Sevier Fossil Plant near Rogersville.

Spectra Energy Partners is a Houston-based master limited partnership, formed by Spectra Energy Corp., that owns interests in gas transportation and storage assets in the United States including more than 3,100 miles of transmission and gathering pipeline and approximately 49 Bcf of gas storage.

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