Spectra Energy Corporation (NYSE: SE), an S&P 500 processor and distributor of natural gas, plans to construct a C$12 million carbon sequestration facility at its natural gas plant in northeastern British Columbia.
Spectra’s facility in Fort Nelson has the potential to store about one million tonnes of carbon dioxide annually. In order to reduce emissions of greenhouse gases the company is in need of carbon sequestration.
Preliminary the company and the government of the province are going to study geological feasibility of permanently storing captured carbon dioxide and hydrogen sulfide in a reservoir two kilometers (1.3 miles) underground.
Spectra was formed in late 2006 from the spin-off with Union Gas from Duke Energy (NYSE: DUK). Spectra owns the Texas Eastern Pipeline (TETCo), a major natural gas pipeline which brings gas from the Gulf of Mexico coast in Texas to the New York City area. It is one of the largest pipeline systems in the United States.