Texas Eastern
| Company type | Public |
|---|---|
| Industry | Natural gas |
| Predecessor | Duke Energy (natural gas operations) |
| Founded | December 29, 2006 |
| Founder | Duke Energy (spin-off) |
| Defunct | February 2017 |
| Fate | Merged with Enbridge |
| Successor | Enbridge Inc. |
| Headquarters | Houston , United States |
Area served | United States, Canada |
| Products | Natural gas transmission and storage, distribution, gathering and processing; oil pipelines |
| Website | www |
Spectra Energy Corp, based in Houston, Texas, conducted operations within three primary segments of the natural gas sector: transmission and storage, distribution, as well as gathering and processing. Established in late 2006 as a spin-off from Duke Energy, Spectra held ownership of the Texas Eastern Pipeline (TETCo), a significant natural gas pipeline system transporting gas from the Gulf of Mexico region in Texas to the metropolitan area of New York City. This pipeline ranks among the largest in the United States.[1] The corporation also managed three oil pipeline assets.[2] In February 2017, Spectra Energy merged with Canadian energy leader Enbridge.[3]
History
In 2002, Duke Energy expanded its portfolio by acquiring Canadian company Westcoast Energy, which owned Union Gas headquartered in Chatham, Ontario, regulated under the 1998 Ontario Energy Board Act.
On December 29, 2006, Standard & Poor's included Spectra Energy in its S&P 500 Index, replacing software firm Parametric Technology Corp. (). Spectra began trading on the New York Stock Exchange under 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, resulting in the formation of Spectra Energy. Shareholders of Duke received one share of Spectra for every two shares they held of Duke.
By August 2007, during a market downturn, Spectra’s stock price declined to its lowest level since inception following a reported 39% decrease in second-quarter earnings.[4]
Financial results improved substantially by 2009, with total shareholder returns reaching 38.3%. In 2011, Spectra announced record net income surpassing projections by more than 7% and increased its annual dividend by nearly 8%, bringing it to $1.12 per share.
Merger with Enbridge
On September 6, 2016, Canadian pipeline company Enbridge Inc. agreed to acquire Spectra Energy through an all-stock deal valued at roughly $28 billion.
Environmental record
In 2010, Spectra Energy was ranked 280th in Newsweek's green rankings among America’s top 500 publicly traded companies, evaluated based on environmental impact, policies, and public perception.
Nonetheless, the company has encountered several environmental issues and regulatory penalties. Since 2006, the Pipeline and Hazardous Materials Safety Administration documented 25 incidents involving Spectra's Texas Eastern Transmission Pipeline, including equipment malfunctions and corrosion-related problems, leading to $12 million in property damage and $403,100 in federal fines. The latest recorded incident occurred in May 2015 near Little Rock, Arkansas. Moreover, Spectra’s Algonquin Gas Transmission Pipeline was fined $154,700 following a 2010 event. The Southeast Supply Header Pipeline caused damages amounting to $561,563 from a separate incident in 2010 and incurred penalties totaling $201,300.
Spectra Energy ranks among British Columbia’s largest private-sector contributors to greenhouse gas emissions. In 2005, its joint venture with ConocoPhillips through DCP Midstream Partners was associated with annual emissions of 19,746 tons of nitrogen oxides and 9,286 tons of volatile organic compounds. As of August 2015, Westcoast Energy—a subsidiary of Spectra—was fined $122,300 by Canada’s National Energy Board for regulatory breaches.
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 anticipated completion in late 2015
- Ozark Gas Transmission Pipeline passing through Oklahoma, Arkansas, and Missouri
- Salem Lateral Pipeline in Salem, Massachusetts, currently under construction and projected to finish by November 2016
- Southeast Supply Header Pipeline running across 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 run through New Jersey and Pennsylvania
- NEXUS Gas Transmission Pipeline, proposed route covering Illinois, Michigan, Ohio, and Ontario
- Sabal Trail Transmission Pipeline, stretching from central Alabama through southwestern Georgia to Orange County, Florida; minority ownership includes NextEra Energy and Duke Energy
Active oil pipelines
- Express Pipeline, connecting Hardisty, Alberta to Casper, Wyoming
- Platte Pipeline, linking Casper, Wyoming with Wood River, Illinois
- Sand Hills and Southern Hills Pipeline, jointly held by DCP Midstream, Phillips 66, and Spectra Energy
External links
- ↑ FERC pipeline codes
- ↑ "Spectra Energy Liquids".
- ↑ "Enbridge and Spectra Energy Complete Merger". February 27, 2017.
{{cite web}}: Missing or empty|url=(help) - ↑ Midday Leaders & Laggards: S&P 500
- Natural gas companies of the United States
- Natural gas pipeline companies
- Petroleum in Texas
- Companies based in Houston
- Energy companies established in 2006
- Non-renewable resource companies established in 2006
- 2006 establishments in Texas
- Duke Energy
- 2017 mergers and acquisitions
- Enbridge
- 2017 disestablishments in Texas
- Energy companies disestablished in 2017