Spectra Energy is a leading gas infrastructure provider
The tremendous natural gas reserves of the Horn River basin have led to a massive amount of investment into the region. In addition to the now familiar investments by the BC government, Encana Corp. and TransCanada Corp., Spectra Energy Corp, one of the leading gas infrastructure companies in North America, announced plans to start a pipeline crossing project at the Salmon River. Discussions with Ministry of Environment and Fisheries and Oceans are still on going according to Spectra’s Manager of Community and Aboriginal Relations as the Company deals with concerns expressed by various groups.
The current project plan is to start in the third week in June and take approximately 6 months to complete. Spectre will drill a “pilot hole” to a depth of approximately 20 meters under the Salmon River and pull the pipeline through that pilot hole.
Spectra Energy develops and operates pipelines in addition to natural gas gathering and processing, transporting, storing and distributing for North American markets. Spectra is the third largest natural gas pipeline company in North America.
Spectra CEO, Greg Ebel, recently stated that the company may raise spending by about 54% to $1.0 Billion in 2010 as producers demand new infrastructure. Ebel stated in a recent interview:
“There is a good possibility we could see in the billion dollar range again next year. The need for gas infrastructure is still very strong in North America, driven by a couple of factors.”
These “factors” include the increasing use of natural gas in power generation and the changing dynamics of the supply brought on by output from so-called unconventional plays such as the shale gas.
The increase in spending is directly linked to the development of the Horn River basin. Spectra is expanding its gathering and processing capacity to accommodate gas from the Horn River shale and adding storage caverns along the U.S. Gulf Coast.
Between 2009 to 2012, Spectra has a number of proposed expansion projects to increase gathering and processing capacity in Fort Nelson, BC in order to accomadate gas from the Horn River basin. The Company reports firm “take or pay” initial commitments from eight customers totalling 750 mmcf/day.
