Spectra Expects to Spend Nearly $100 Million on Corrective Actions After Pipeline Blast

APRIL 29, 2016 NATURAL GAS EXPLOSION IN SALEM TOWNSHIP, PENNSYLVANIA -- PHOTO FROM ABC NEWS

APRIL 29, 2016 NATURAL GAS EXPLOSION IN SALEM TOWNSHIP, PENNSYLVANIA -- PHOTO FROM ABC NEWS

Spectra Energy expects to spend approximately $75 to $100 million to inspect and repair its natural gas pipeline system in Salem Township, Pennsylvania following a gas explosion back in April of this year.

A section of Spectra Energy’s Texas Eastern pipeline failed on April 29, 2016 and resulted in an explosion that left a 12-foot deep, 1500-square-foot hole and burned 40 acres of land. The incident also severely burned a man and disrupted natural gas service to the northeastern U.S.

Spectra’s Chief Financial Officer and Vice President John Patrick Reddy said the company is working closely with PHMSA to take corrective actions. He told investors that Spectra expects to have the line completely back to its required standards by November 1 in order to meet customer obligations for the winter season.

Earlier last month, PHMSA released an Amended Corrective Action Order to Spectra Energy requesting additional corrective actions regarding the Texas Eastern pipeline, saying that other lines in Salem Township potentially have been damaged or adversely affected by the explosion.

Source:
NPR - State Impact