Spectra reaches Montney shale gas processing agreements

Spectra Energy Corp. has entered into multiyear agreements with Progress Energy Resources Corp. to provide a total 370 MMcfd of natural gas gathering and processing services for Montney shale production in northeast British Columbia. The agreements provide 210 MMcfd of new service as well as renewing current contracts. Spectra Energy will use its Highway, Jedney, and McMahon facilities and reactivate of its Aitken Creek Gas Plant, to meet terms of the contract.

Spectra announced construction of a new 200 MMcfd gas processing plant in the Montney shale in mid-2010 (OGJ Online, June 11, 2010).

Spectra Energy operates more than 2,200 km of gathering pipeline and has interests in 10 processing plants with more than 1.5 bcfd combined capacity in the Montney region.

The Montney shale contains about 450 tcf of original gas in place, according to Spectra.

Contact Christopher E. Smith at chriss@ogjonline.com.

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