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Spectra Energy to Build New Natural Gas Gathering Pipeline

Posted on: Friday, 14 December 2007, 09:00 CST

Spectra Energy has announced that it is proposing to build a new natural gas gathering pipeline, known as the South Peace pipeline, to connect a growing exploration area of northeast British Columbia with its existing processing and transportation infrastructure.

The proposed pipeline would form an extension to Spectra Energy's existing raw gas gathering system in the Fort St John resource area of northeast British Columbia to an area south of Spectra Energy's McMahon gas processing plant in Taylor, British Columbia. Natural gas reserves connected to the South Peace pipeline would be transported for processing at the McMahon plant.

The approximately 85 kilometer South Peace pipeline will have a transportation capacity in excess of 220 million cubic feet a day. It is expected that construction of this project will cost approximately C$100 million.

Gary Weilinger, president of the British Colombia pipeline and field services divisions, said: "We are encouraged by the development potential of this emerging natural gas production area in northeast British Colombia. We believe the production area south of the Peace River will complement our existing infrastructure already in place, providing highly reliable market access to new customers in the area, and ultimately increasing the utilization of our McMahon gas plant and surrounding facilities."

Source: Datamonitor

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