HOUSTON (dpa-AFX) - Spectra Energy Corp (SE) and Spectra Energy Partners (SEP) on Thursday said that, through their affiliate, Spectra Energy Transmission II LLC ('SET'), they have entered into a purchase and sale agreement to acquire from ConocoPhillips Co (COP) 100 percent of the equity interests in Brazoria Interconnector Gas Pipeline LLC ('BIG'), which owns the BIG Pipeline. The financial terms of the deal were not disclosed.
The BIG Pipeline is a 42-inch natural gas pipeline in Brazoria County, Texas, with a capacity of about 1.8 billion cubic feet per day. It extends 30.5 miles between Stratton Ridge on its south end to a point near Iowa Colony in northern Brazoria County.
Spectra said the newly acquired BIG Pipeline will be a component of the Stratton Ridge Project, an expansion project of the Texas Eastern Transmission pipeline system to deliver up to 400,000 dekatherms per day of natural gas to Stratton Ridge, Texas. The Stratton Ridge Project, including the BIG Pipeline acquisition, has an expected capital expenditure of about $200 million and is anticipated to be in service the first quarter of 2019.
The deal is expected to close in the second quarter of 2016.
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