Texas-based Spectra Energy Corporation (SE - Free Report) is expected to conduct maintenance outages in its Bobcat salt cavern natural gas storage facility in Louisiana later this summer.
The activity is related to expansion work at the site, where some injections or withdrawals are likely to be confined. The facility, located at St. Landry Parish, La., currently supplies natural gas producers and shippers with around 14 billion cubic feet (bcf) of working capacity. The expansion is projected to boost capacity to 46 bcf.
As posted in a website, the company said it might have to restrict interruptible and secondary firm injection or withdrawal nominations. Spectra has three outages planned for Jul 24–26, Jul 30–Aug 2 and Aug 6–7, during which period it is likely to limit ability to transmit supplies, depending on the interconnecting pipeline pressures.
The Bobcat site connects with Spectra's Texas Eastern natural gas pipeline system and four other pipeline systems.
Spectra plans to deploy about $25 billion over the next decade on fee-based gas infrastructure growth projects. The company expects to commission around 8 projects through 2016. Further, growth will be achieved by a master limited partnership (MLP) dropdown strategy, following the recent asset additions.
Spectra Energy, through its subsidiaries and equity affiliates, engages in the ownership and operation of a portfolio of complementary natural gas-related energy assets. The company operates in four segments: U.S. Transmission, Distribution, Western Canada Transmission & Processing, and Field Services. The company also has 50% ownership in DCP Midstream, one of the largest natural gas gatherers and processors in the U.S.
Spectra Energy carries a Zacks Rank #3 (Hold). However, the Zacks Ranked #1 (Strong Buy) stocks – Memorial Production Partners LP , Gulfmark Offshore, Inc. (GLF - Free Report) and Natural Gas Services Group Inc. (NGS - Free Report) – are expected to outperform in the near term.