Texas Eastern Appalachia to Market Expansion Program (TEAM)

  • Location: Ohio, West Virginia, Pennsylvania
  • Scope: Multiple year supply connection and expansion program that can grow each year as the production grows
  • Capacity: Targeting 300 million cubic feet per day, but project can be scalable and sized to meet customer needs
  • Interconnects: 30 plus
  • In-service: TEAM 2012 capacity commencement date is targeted as early as November 1, 2012, with additional interest ramping up over the next few years as production efforts expand
  • Ownership Interest: 100 percent Spectra Energy
  • TEAM 2012 Binding Open Season November 17 through December 1, 2009
  • Contact: Sean Foley, project director, at 617-560-1359 or spfoley@spectraenergy.com

Map: TEAM Project

Texas Eastern’s Appalachia to Market Expansion Program offers the unique opportunity for moving emerging natural gas supplies from the Appalachian region to premium markets in the Northeast.

Spectra Energy’s Texas Eastern Transmission, LP, a leading provider of natural gas transportation to Northeast markets including the Mid-Atlantic and New England states, is pleased to announce its Texas Eastern Appalachia to Market Expansion Program, a new expansion program designed to transport emerging Appalachian production to premium natural gas markets in the Northeast U.S. These newly emerging regional supplies will significantly add to the reliability, security, diversity and optionality of supply for the Northeast region especially when combined with traditional supply sources, as well as new Rocky Mountain and new LNG supply sources.

Texas Eastern is well positioned to develop a multi-year connection and capacity expansion program to efficiently connect these developing Appalachian natural gas supplies to its system - and to provide the incremental expansion capacity necessary as the production develops.

Texas Eastern has a proven track record of delivering successful expansion projects to its customers; TEAM is a project that will provide an efficient means to bring newly emerging natural gas supplies to Northeast citygates.

Project Background

The rapidly emerging Appalachian production area has created new opportunities to increase supply diversity for growing domestic natural gas markets. The formation spans the regions of West Virginia, Eastern Ohio, Western and Northern Pennsylvania and Southern New York. Recent studies have estimated that the formation may contain up to 500 trillion cubic feet of gas in place. It is also estimated that 10 percent of this gas is technically recoverable. With the successful development of the Barnett, Fayetteville and other shale plays in the U.S., Texas Eastern is anticipating the positive, potential impact the emerging Appalachian production will bring to its customers and the Northeast markets in general.

Texas Eastern’s existing facilities are uniquely positioned over the Appalachian production area while also providing significant access to all major Northeast markets. We are developing and constructing well-timed, cost effective pipeline expansions that will connect significant sources of supply to the region. These expansions offer growing Northeast markets increased supply diversity, enhanced ability to better manage price volatility, and improved supply security and reliability. Conventional Northeast market growth and increasing natural gas power generation offer attractive market options for these newly developing sources.

Connecting markets to new supply has been instrumental to Texas Eastern’s success for many years. Texas Eastern has proven its ability and experience to develop and execute TEAM as it has developed and executed similar type projects in the past. In addition, Texas Eastern intends to develop future expansion projects as the Appalachian supply increases. TEAM intends to utilize existing rights of way, where possible, for the expansion in order to manage construction cost and minimize the impact on landowners and the environment.

Project Description

TEAM provides shippers with the opportunity to design transportation services from multiple existing and proposed new receipt points on the Texas Eastern system within the Appalachian production region in West Virginia, Ohio and Pennsylvania that span Texas Eastern’s M2 and M3 market zones to delivery points across Texas Eastern’s market area including, but not limited to, Lambertville, N.J.; the Steckman Ridge Storage project in Bedford, Pa.; near Transco Station 195 in York County, Pa; Dominion Transmission at Chambersburg, Pa.; and Columbia Gas Transmission near Eagle, Pa. The expansion has a target capacity of 300,000 Dth/day but the project’s success is not dependent on or restricted to this target volume. TEAM is intended to meet the initial supply growth needs in the 2011/2012 timeframe. Existing delivery interconnects with numerous storage projects and other interstate gas pipelines present tremendous flexibility and opportunity to participants in this expansion program. Texas Eastern’s vast existing infrastructure coupled with necessary expansion facilities allows shippers to address their growth needs and diversify their supply while enjoying the reliable, flexible service Texas Eastern shippers have grown to depend on.

Communications

Interested parties may contact their Texas Eastern account manager or Bob Riga at 617-560-1436 or Sean Foley at 617-560-1359 to discuss any questions or to seek additional information.