Algonquin Receives FERC Approval for Northeast Gateway Lateral

BOSTON, March 19 /PRNewswire-FirstCall/ — Algonquin Gas Transmission, LLC (Algonquin) received approval from the Federal Energy Regulatory Commission (FERC) to construct and operate a sub-sea pipeline that will transport substantial volumes of regasified liquefied natural gas from Excelerate Energy’s proposed Northeast Gateway Energy Bridge deepwater port. Algonquin is a Spectra Energy pipeline.

(Logo: http://www.newscom.com/cgi-bin/prnh/20061030/CLM051LOGO )

The pipeline, known as the Northeast Gateway Lateral, will have the capacity to transport up to 800,000 dekatherms per day of natural gas to Algonquin’s pipeline system serving the growing Greater Boston area and New England market. The new volumes will help meet the region’s increasing demand for natural gas and provide customers with greater energy security and reliability.

“The Northeast Gateway Lateral, which is fully subscribed by Excelerate Energy, will bring critically needed natural gas supplies to New England in time for the 2007-2008 winter season and enhances the flexibility and deliverability of the region’s transportation network,” said Bill Yardley, Spectra Energy’s group vice president, northeast transmission. “We will continue to develop our pipeline infrastructure to provide access to supply options to our customers and the markets we serve.”

In its decision, FERC authorized the construction of approximately 16 miles of 24-inch diameter pipeline that will traverse under the seafloor from Algonquin’s existing system to Excelerate’s Northeast Gateway Energy Bridge deepwater port, proposed to be located approximately 13 miles off the coast of Gloucester, Mass. The Northeast Gateway Energy Bridge deepwater port received approval from the U.S. Maritime Administration in February.

“After a comprehensive review of the project, FERC has determined that the Northeast Gateway Lateral may be constructed and operated in a safe, cost- effective and environmentally responsible manner and we appreciate the efforts of both the FERC and the Commonwealth of Massachusetts in getting this project to this critical juncture,” continued Yardley. “We will continue to work closely with federal and state agencies and all interested parties as we move forward.”

Construction is anticipated to begin this spring with operations planned to commence in December.

Spectra Energy Corp is one of North America’s premier pure play natural gas midstream companies serving three key links in the natural gas value chain: gathering and processing, transmission and storage, and distribution. For close to a century, Spectra Energy and its predecessor companies have developed critically important pipelines and related energy infrastructure connecting natural gas supply sources to premium markets. Based in Houston, Texas, the company operates in the United States and Canada approximately 17,500 miles of transmission pipeline, 250 billion cubic feet of storage, natural gas gathering and processing, natural gas liquids operations and local distribution assets. Spectra Energy Corp also has a 50 percent ownership in DCP Midstream, one of the largest natural gas gatherers and processors in the United States. Visit http://www.spectraenergy.com/ for more information.

Forward-Looking Statements

This release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements represent our intentions, plans, expectations, assumptions and beliefs about future events. This release includes forward-looking statements concerning future developments at our facilities, including the anticipated timing of planned capital expansions, and anticipated future demand for natural gas pipeline capacity. Such statements are subject to risks, uncertainties and other factors, many of which are outside our control and could cause actual results to differ materially from the results expressed or implied by those forward-looking statements. Those factors include: the timing and success of efforts to develop infrastructure projects; the timing and receipt of required regulatory approvals; the timing and receipt of sufficient capacity commitments for the described project; and fluctuations in the demand for natural gas in the markets serviced by the described project. These factors, as well as additional factors that could affect our forward-looking statements, are described under the headings “Risk Factors” and “Forward-Looking Statements” in our Form 10, filed with the Securities and Exchange Commission on December 6, 2006, which is available at the SEC’s website at http://www.sec.gov/. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than we have described. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20061030/CLM051LOGOAP Archive: http://photoarchive.ap.org/PRN Photo Desk, photodesk@prnewswire.com

Spectra Energy Corp

CONTACT: John Sheridan, +1-617-560-1444, 24-hour media line,+1-713-627-4747, or Analysts, John Arensdorf, +1-713-627-4600, both of SpectraEnergy Corp

Web site: http://www.spectraenergy.com/