Spectra and NU grow alliance for Access Northeast project

Spectra Energy Corp. and Spectra Energy Partners

Spectra Energy Corp. (NYSE: SE), Spectra Energy Partners (NYSE: SEP), and Northeast Utilities (NYSE: NU) report that their Access Northeast project has formed an alliance with Iroquois Gas Transmission System LP to provide New England with additional access to natural gas supplies.

Collaboration with regional natural gas asset owners is a key objective for Access Northeast, which was announced in September to help address New England's growing concerns about energy reliability and rising electric and natural gas prices. Access Northeast will move natural gas sourced from the Appalachian Basin into New England by maximizing the use of existing infrastructure on existing footprints while minimizing impacts to homes, communities, and the environment.

"With FERC's recent issuance of a certificate approving the Constitution Pipeline Project and Iroquois' companion Wright Interconnect Project, another major milestone in establishing a direct link to the Marcellus supply basin has been achieved," stated Jeff Bruner, president of Iroquois. "Considering the fact that the Wright Hub will become a very significant physical source of Marcellus gas supply to New England and New York over the next several years, the opportunity to collaborate with Spectra Energy and Northeast Utilities by leveraging Iroquois' existing pipeline footprint should result in significant environmental and cost benefits to the consumers in this region."

Together, Iroquois and Spectra Energy's Algonquin and Maritimes pipelines are directly connected to more than 70% of New England's natural-gas-fired electric generation.

Access Northeast's alliance with Iroquois will provide shippers with access to natural gas supplies from multiple, diverse receipt points. During the project's open season for transportation service, shippers will be able to select from multiple receipt point options along the Algonquin pipeline system, including the Iroquois pipeline system at Wright, New York. 

Additionally, shippers will have the opportunity to choose from Algonquin's diverse receipt points with other existing interconnecting pipelines: Texas Eastern, Millennium, Tennessee Gas Pipeline, Columbia Gas, and Transco; as well as future connections like the PennEast Project that will connect directly to Marcellus shale production in northeast Pennsylvania. Spectra Energy recently became a partner in the development of the PennEast Pipeline.

Access Northeast has an anticipated in-service date of November 2018.


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