Spectra Energy
| Company type | Public |
|---|---|
| Industry | Natural gas and oil pipeline |
| Predecessor | Duke Energy (natural gas operations spin-off) |
| Founded | December 29, 2006 in Houston, Texas, United States |
| Defunct | February 2017 |
| Fate | Merged with Enbridge |
| Successor | Enbridge Inc. |
| Headquarters | Houston, Texas , United States |
Area served | United States, Canada |
| Products | Natural gas transmission and storage, distribution, gathering and processing; oil pipelines |
| Website | spectraenergy |
Spectra Energy Corp, headquartered in Houston, Texas, operated primarily within three segments of the natural gas sector: transmission and storage, distribution, as well as gathering and processing. Founded in late 2006 following a spin-off from Duke Energy, Spectra owned the Texas Eastern Pipeline (TETCo), one of the largest natural gas pipeline networks in the United States, transporting gas from the Gulf of Mexico coast in Texas to the vicinity of New York City. The company also managed three oil pipeline systems. In February 2017, Spectra merged with Canadian energy leader Enbridge.
History
In 2002, Duke Energy acquired the Canadian company Westcoast Energy, which owned Union Gas and operated under regulation by the 1998 Ontario Energy Board Act.
On December 29, 2006, Spectra Energy was added to the S&P 500 Index by Standard & Poor's, replacing software firm Parametric Technology Corp. (). Spectra began trading on the New York Stock Exchange with the ticker symbol SE.
The spin-off of Duke Energy’s natural gas operations—including Westcoast Energy and Union Gas—was finalized on January 3, 2007, creating Spectra Energy as an independent entity. Duke shareholders were issued one share of Spectra for every two shares they held in Duke.
Following a market downturn, Spectra’s stock price fell to its lowest level since its initial public offering by August 2007, after reporting a 39% decline in second-quarter earnings.
By 2009, the company’s financial results had strengthened considerably, delivering a total shareholder return of 38.3%. In 2011, Spectra achieved record net income surpassing earnings projections by more than 7%, and increased its annual dividend by nearly 8% to $1.12 per share.
Merger with Enbridge
On September 6, 2016, Canadian pipeline company Enbridge Inc. announced an agreement to acquire Spectra Energy through an all-stock deal valued at roughly $28 billion.
Environmental record
In 2010, Spectra Energy was ranked 280th among the top 500 publicly traded U.S. companies in Newsweek’s green rankings, which assess environmental impact, policies, and corporate reputation.
Nevertheless, the firm has encountered several incidents and regulatory sanctions. Since 2006, the Pipeline and Hazardous Materials Safety Administration has documented 25 incidents involving Spectra's Texas Eastern Transmission Pipeline, including failures related to equipment and corrosion. These events caused property damage exceeding $12 million and led to federal penalties totaling $403,100. The most recent event occurred in May 2015 with a pipeline rupture near Little Rock, Arkansas. Furthermore, Spectra’s Algonquin Gas Transmission Pipeline was fined $154,700 following a 2010 incident, while its Southeast Supply Header Pipeline was penalized $201,300 after a separate event in the same year that resulted in damages over $560,000.
Spectra Energy stands as the largest private-sector emitter of greenhouse gases in British Columbia. In 2005, through its joint ownership of DCP Midstream Partners alongside ConocoPhillips, it released substantial quantities of nitrogen oxides and volatile organic compounds annually. As of August 2015, Canada’s National Energy Board imposed a fine of $122,300 on Spectra's subsidiary Westcoast Energy for regulatory non-compliance.
Active natural gas pipelines
- Algonquin Gas Transmission Pipeline
- BC Pipeline, traversing British Columbia, Canada
- Big Sandy Pipeline located in eastern Kentucky
- Union Gas' Dawn to Parkway Transmission Pipeline situated in southwestern Ontario, Canada
- East Tennessee Natural Gas Pipeline
- Gulfstream Natural Gas Pipeline
- Maritimes & Northeast Pipeline
- Ohio Pipeline Energy Network (OPEN), with an anticipated completion date in late 2015
- Ozark Gas Transmission Pipeline passing through Oklahoma, Arkansas, and Missouri
- Salem Lateral Pipeline, currently under construction in Salem, Massachusetts, expected to be finished by November 2016
- Southeast Supply Header Pipeline spanning Louisiana, Mississippi, and Alabama
- Texas Eastern Transmission Pipeline
- Union Gas Pipeline System in Ontario operated by Spectra Energy’s subsidiary Union Gas
Planned natural gas pipelines
- PennEast Pipeline, intended to extend through New Jersey and Pennsylvania
- NEXUS Gas Transmission Pipeline, proposed to cover Illinois, Michigan, Ohio, and Ontario
- Sabal Trail Transmission Pipeline, linking central Alabama with southwestern Georgia and Orange County, Florida, with minority ownership by NextEra Energy and Duke Energy
Active oil pipelines
- Express Pipeline, running from Hardisty, Alberta to Casper, Wyoming
- Platte Pipeline, extending from Casper, Wyoming to Wood River, Illinois
- Sand Hills and Southern Hills Pipelines, co-owned by DCP Midstream, Phillips 66, and Spectra Energy