Spectra Energy Inks Gas Deal With Range Resources

HOUSTON (AP) — Spectra Energy Corp. said Monday its subsidiary, Texas Eastern Transmission LP, reached a deal with oil and gas producer Range Resources Corp. to transport supplies of Appalachian natural gas in the northeastern U.S.

Under the agreement, Texas Eastern will provide a minimum of 150 million cubic feet per day of transportation capacity for Range Resources at the Marcellus Shale formation in Pennsylvania.

Texas Eastern also said it is proposing an increase of its system capacity by up to 300 million cubic feet per day starting in the fourth quarter of 2012.

It will soon announce a binding open season for the remaining 150 million cubic feet per day capacity for the 2012 date. It may also pursue a second phase of the expansion program depending on market demand, the company said.

Shares of Spectra Energy rose 23 cents to $19.40 in morning trading. Range Resources rose $1.39, or 2.9 percent, to $49.47.