CALGARY, Alberta, March 26 /PRNewswire-FirstCall/ -- Spectra Energy (NYSE:
SE) today announced it is proceeding with the next stage of the feasibility
work associated with the company's Fort Nelson carbon capture and
sequestration (CCS) project by commencing detailed geological assessments.
"This work represents an important milestone in the Fort Nelson carbon
capture and storage feasibility project," said Doug Bloom, president, Spectra
Energy Transmission West. Since our existing Fort Nelson gas plant already
separates carbon dioxide (CO2) during processing, the "carbon capture" part of
the CCS challenge has been addressed. Therefore, our focus now is on field
work to confirm the suitability of the geological formations in the area to
support large-scale sequestration of CO2."
The assessment will require drilling 2.5 kilometres into multiple
sub-surface geological formations to extract core samples and perform tests of
the physical properties of the saline formation into which CO2 may be
sequestered.
The core samples will be sent to a laboratory for various tests and
in-depth analyses. The results, together with reservoir modelling work, are
expected later this year and will provide critical information regarding the
geological feasibility of a world-scale project. A concurrent review of the
technical, regulatory and economic feasibility of the project also is
underway. At the conclusion of the feasibility phase, a determination will be
made regarding whether and when to proceed to a full-scale project.
Spectra Energy's feasibility work, which today received support from the
Government of Canada during an announcement made by Natural Resources Minister
Lisa Raitt in Calgary, has previously received a grant from the Government of
British Columbia. The project also has the support of the U.S. Department of
Energy's National Energy Technology Laboratory, through the Energy &
Environmental Research Center's Plains CO2 Reduction (PCOR) Partnership. It
has made an in-kind contribution to support the monitoring and verification
elements of the project as part of its commitment to research, development,
demonstration, and commercialization of cleaner, more efficient energy and
environmental technologies.
"What makes this potential project unique is its sheer size and scale,
which would dwarf most existing projects, and be among the largest in the
world," said Bloom. "Public sector involvement in a project of this scope is
essential and will result in the sharing of best practices across the
industry, and have benefits in application to other industries within British
Columbia, Canada and internationally."
Spectra Energy has been recognized by the UN Intergovernmental Panel on
Climate Change as a world leader in CCS applications. Currently, eight of
Spectra Energy's gas processing facilities in Western Canada are equipped with
CCS technology. On average, these facilities remove about 200,000 tonnes of
greenhouse gases from the atmosphere each year.
Spectra Energy Corp (NYSE: SE), a FORTUNE 500 company, is one of North
America's premier natural gas infrastructure companies serving three key links
in the natural gas value chain: gathering and processing, transmission and
storage, and distribution. For nearly a century, Spectra Energy and its
predecessor companies have developed critically important pipelines and
related infrastructure connecting natural gas supply sources to premium
markets. Based in Houston, Texas, the company operates in the United States
and Canada approximately 18,300 miles of transmission pipeline, 270 billion
cubic feet of storage, natural gas gathering and processing, natural gas
liquids operations and local distribution assets. The company also has a 50
percent ownership in DCP Midstream, one of the largest natural gas gatherers
and processors in the United States. Spectra Energy was recently ranked by
FORTUNE as the world's "most admired" pipeline company. For more information,
visit www.spectraenergy.com.
SOURCE Spectra Energy Corp
CONTACT: Media, Lise-Ann Jackson, +1-403-699-1506, or Analysts, John
Arensdorf, +1-713-627-4600
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