Spectra Energy Awarded $1.5 Billion Nueces-to-Brownsville Pipeline Project to Meet Critical Need for Natural Gas in Mexico

HOUSTON, June 13, 2016 /CNW/ -- Spectra Energy Corp (NYSE: SE) today announced that its subsidiary, Valley Crossing Pipeline, LLC, has been awarded a 168-mile intrastate natural gas pipeline project by the Comisión Federal de Electricidad (CFE) – Mexico's state-owned utility serving 37 million customers – to provide natural gas transportation services beginning in 2018 to meet Mexico's growing electric generation needs.

"Spectra Energy is pleased to have secured the bid to build and operate this critical infrastructure, which will provide clean-burning and reliable natural gas to support Mexico as its electric generators shift away from fuel oil and imported LNG," said Bill Yardley, president of U.S. Transmission and Storage for Spectra Energy. "Successfully securing this project adds to our already-strong asset portfolio, connects us to another key demand-pull market, and brings us closer to our goal of securing $35 billion in capital expansion projects by the end of this decade, with approximately $20 billion either in execution or in service since 2013."

Valley Crossing will construct and operate a header system of more than 5 billion cubic feet per day (Bcf/d) near the Agua Dulce Hub in Nueces County, Texas, as well as a 2.6 Bcf/d pipeline originating at that header and extending to Brownsville, Texas. There, the pipeline will connect with the Sur de Texas – Tuxpan pipeline, which will extend into Mexico.

Spectra Energy Corp (NYSE: SE), a FORTUNE 500 company, is one of North America's leading pipeline and midstream companies. Based in Houston, Texas, the company's operations in the United States and Canada include more than 21,000 miles of natural gas, natural gas liquids, and crude oil pipelines; approximately 300 billion cubic feet (Bcf) of natural gas storage; 4.8 million barrels of crude oil storage; as well as natural gas gathering, processing, and local distribution operations. Spectra Energy is the general partner of Spectra Energy Partners (NYSE: SEP), one of the largest pipeline master limited partnerships in the United States and owner of the natural gas and crude oil assets in Spectra Energy's U.S. portfolio. Spectra Energy also has a 50 percent ownership in DCP Midstream, the largest producer of natural gas liquids and the largest natural gas processor in the United States. Spectra Energy has served North American customers and communities for more than a century. For more information, visit www.spectraenergy.com.

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SOURCE Spectra Energy Corp

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