Enbridge Acquires Houston's Spectra Energy for $3.3 Billion

Enbridge has secured a $3.3 billion deal to buy Houston-based Spectra Energy Partners LP.

The deal will serve as a merger and acquisition agreement in which Spectra Energy’s shareholders will receive 1.111 shares in Enbridge stock for each share of Spectra Energy stock.

With a value of more than $3.3 billion, the deal creates one of the largest midstream companies in North America.

Pipeline Town Hall will continue to share more information as it is reported.

Source:
Houston Chron

PHMSA Orders Spectra Energy to Conduct Additional Pipeline Tests After Salem Township Explosion

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

PHMSA released on Tuesday an Amended Corrective Action Order to Spectra Energy’s subsidiary Texas Eastern Transmission requesting additional corrective actions regarding the pipeline section that failed on April 29, 2016 in Salem Township, Pennsylvania.

The federal agency is ordering the natural gas pipeline company to conduct additional assessments on three lines, including one that has corrosion similar to a fourth line that blew up in April. PHMSA stated that the other lines in Salem Township “potentially have been damaged or adversely affected” by the April explosion. The new assessments could potentially lead to pipeline upgrades.

Spectra Spokesman Creighton Welch said that the PHMSA order is “well-aligned” with Spectra’s plans to improve its Penn-Jersey pipeline system and that many items recommended in the order are already completed or in progress.

The pipeline that failed in April of this year is a 30-inch diameter line that transports natural gas from the Delmont Compressor Station in Salem Township, Pennsylvania, to the Lambertville Station.

Source:
PHMSA Amended Corrective Action Order
PennEnergy

Spectra Energy Awarded $1.5 Billion Pipeline Project in Mexico to Meet Growing Natural Gas Needs

Houston-based Spectra Energy announced Monday that its subsidiary Valley Crossing has been awarded $1.5 billion for a pipeline project by Mexico’s state-owned power company Comisión Federal de Electricidad (CFE) to provide natural gas transportation services from Texas that will meet Mexico’s growing electric generation needs.

The structure will provide clean-burning and reliable natural gas to support Mexico as it shifts from fuel oil to LNG. The pipeline project will add to Spectra’s strong asset portfolio, connect them to another key-demanding market, and add to their goal of securing $35 billion in capital expansion projects by 2020.

Spectra’s subsidiary will construct and operate a header system of more than 5 billion cubic feet per day near Nueces County, Texas and a 2.6/bcf/d pipeline starting at that same header and going into Brownsville, Texas. In Brownsville the pipeline will connect with the Sur de Texas-Tuxpan pipeline contracted by TransCanada that will extend to Mexico.

Source:
Spectra Energy