Spectra Energy (NYSE: SE) and master limited partnership Spectra Energy Partners (NYSE: SEP) announced today that they have secured an additional 650,000 dekatherms per day of long-term natural gas shipment contracts.
Five different corporations have signed on Spectra's dotted line, setting themselves up with new natural gas supplies along the Texas and Louisiana coast for industrial use and LNG exports.
"Spectra Energy's Texas Eastern system is strategically located to provide natural gas from the burgeoning Marcellus, Utica, and Eagle Ford production areas to meet demand growth in the industrial and LNG export sectors," said Bill Yardley, president, U.S. transmission and storage, of Spectra Energy. "We're proud to be the provider of choice for gas producers seeking new industrial markets and for the developing LNG export market in the Gulf Coast region."
In-service dates for the new contracts are set for 2016 and 2017, with full capacity expected by 2019. Spectra Energy also recently announced a partnership with Florida-based NextEra Energy (NYSE: NEE) to bring the state its third major natural gas pipeline and expand Spectra's southern stretch even further.