Spectra says wait for new Rockies line

NEW YORK (Reuters) - A new natural gas pipeline will not likely be built in the Rocky Mountains for a few years, the chief executive of Spectra Energy Corp.'s (SE.N: Quote, Profile, Research, Stock Buzz) transmission arm said on Tuesday.

"I think there is enough gas in the Rockies, and there will be enough need for supply that eventually you will see a second pipeline get built," the executive, Martha Wyrsch, told the Reuters Energy Summit.

"It won't be an immediate opportunity, but there is a lot of gas there and a lot of drilling going on, and the producers want to make sure they get their gas to the market," she said.

Currently, Kinder Morgan Energy Partners LP (KMP.N: Quote, Profile, Research, Stock Buzz), Sempra Energy (SRE.N: Quote, Profile, Research, Stock Buzz) and ConocoPhillips (COP.N: Quote, Profile, Research, Stock Buzz) are building the Rockies Express pipeline that will link the region to consuming markets in the Midwest and eventually the Eastern United States.

Natural gas producers have been ramping up drilling in the Rockies as strong energy prices have made the region more attractive, but shipping the gas to major markets remains a hurdle.

Last year, gas producer and pipeline company El Paso Corp. (EP.N: Quote, Profile, Research, Stock Buzz) scrapped plans to build a connection to its network that would have linked the Rockies, Mid-Continent region and Barnett Shale fields of North Texas because of lack of interest from producers.

Spectra, which was split off from Duke Energy Corp. (DUK.N: Quote, Profile, Research, Stock Buzz) earlier this year, operates pipelines, gathering systems and natural gas storage, and produces natural gas liquids.

The company also said it will launch an initial public offering of 10 million shares of its master limited partnership, Spectra Energy Partners LP.

"The Spectra Energy Partners IPO is on track," Wyrsch said. "We expect that to be a mid-year offering."  Continued...