Spectra Energy Receives FERC Approval to Begin Construction on TIME II Project

HOUSTON, June 11 /PRNewswire-FirstCall/ -- Spectra Energy's Texas Eastern Transmission Pipeline has received final approval from the Federal Energy Regulatory Commission (FERC) to proceed with construction of the TIME II Project in Ohio and Pennsylvania.

In its June 8 decision, FERC authorized the construction, replacement and operation of approximately 27.8 miles of pipeline facilities in Pickaway and Monroe Counties, Ohio, and Somerset, Bedford, Franklin, Bucks and Fayette Counties, Pa. In addition, FERC approved four miles of new pipeline looping in Monroe County, Ohio, and a new 16,000 horsepower compressor station in Adams County, Pa.

"Demand for natural gas in the mid-Atlantic and Northeast markets is expected to grow steadily over the next several years," said Bill Yardley, Spectra Energy's group vice president, northeast transmission. "We appreciate FERC's timely review of the application for this expansion that will give customers the ability to diversify their supply sources by providing additional transportation capacity between the market area and Midwestern supplies."

The project will be completed in two phases. The facilities in Pennsylvania will be in service the second half of 2007 and the facilities in Ohio will be in service the second half of 2008. Once in service, TIME II will have a capacity to bring up to 150 million cubic feet per day (MMcf/d) of natural gas into the New Jersey market area.

Texas Eastern, a Spectra Energy pipeline, owns and operates a 9,000 mile pipeline system extending from South Texas and offshore the Gulf of Mexico to major markets in the northeast.

Spectra Energy Corp (NYSE: SE) is one of North America's premier pure play natural gas midstream companies serving three key links in the natural gas value chain: gathering and processing, transmission and storage and distribution. For close to a century, Spectra Energy and its predecessor companies have developed critically important pipelines and related energy infrastructure connecting natural gas supply sources to premium markets. Based in Houston, Texas, the company operates in the United States and Canada approximately 17,500 miles of transmission pipeline, 265 billion cubic feet of storage, natural gas gathering and processing, natural gas liquids operations and local distribution assets. Spectra Energy Corp also has a 50 percent ownership in DCP Midstream, one of the largest natural gas gatherers and processors in the United States. Visit http://www.spectraenergy.com/ for more information.

Forward Looking Statement

This release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements represent our intentions, plans, expectations, assumptions and beliefs about future events. This release includes forward-looking statements concerning future developments at our facilities, including the anticipated timing of planned capital expansions and anticipated future demand for natural gas pipeline capacity. Such statements are subject to risks, uncertainties and other factors, many of which are outside our control and could cause actual results to differ materially from the results expressed or implied by those forward-looking statements. Those factors include: the timing and success of efforts to develop infrastructure projects; the timing and receipt of required regulatory approvals; the timing and receipt of sufficient capacity commitments for the described project; and fluctuations in the demand for natural gas in the markets serviced by the described project. These factors, as well as additional factors that could affect our forward-looking statements, are described in our Form 10-K, filed with the Securities and Exchange Commission on April 2, 2007, and other filings that we make with the SEC, which are available at the SEC's website at http://www.sec.gov/. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than we have described. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.