Spectra will build $120 million pipeline to supply gas to Eastman Chemical
HOUSTON – Spectra Energy Corp (SE) and Spectra Energy Partners, LP announced that their East Tennessee Natural Gas (ETNG) pipeline has executed agreements with Eastman Chemical Company to provide an additional 86 million cubic feet per day (Mmcf/d) of firm transportation capacity for 25 years to Eastman’s Kingsport, Tennessee, facility. The projects have a combined capital cost of approximately $120 million and include modifying existing ETNG facilities and building a new 6.4-mile pipeline extension. Coupled with Eastman’s current contracts, ETNG will provide 121 Mmcf/d of firm capacity to the Kingsport facility when the projects are completed.
“Eastman Chemical is a valued customer, and we are pleased to enhance natural gas transportation service to its Kingsport site,” said Patti Fitzpatrick, vice president, marketing for ETNG. “Our East Tennessee Natural Gas system is well positioned to safely and reliably deliver clean-burning natural gas to Eastman’s steam and electrical power generation facility, and these projects will provide Eastman with enhanced supply options as well as increased reliability.”
The first project, for service of 25 Mmcf/d, is expected to begin in November 2013. The Kingsport Expansion Project, to provide 61 Mmcf/d of additional capacity, is anticipated to be in service during the first quarter of 2015. The projects are subject to approvals by the boards of directors of Spectra Energy Corp, Spectra Energy Partners and Eastman Chemical Company, as well as regulatory approvals.
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