Union Gas Limited

NEWS RELEASE

April 16, 2007

UNION GAS ANNOUNCES OPEN SEASON FOR NEW SERVICE TO MEET NEEDS OF THE ONTARIO POWER MARKET

CHATHAM, ONTARIO – To meet the growing needs of Ontario’s natural gas fired generation market, Union Gas Limited is holding a binding open season for a new Downstream Pipeline Balancing (DPB) storage service.  DPB service -- designed specifically for natural gas power producers -- offers a firm park and loan service at Parkway that can be accessed on a short notice basis.  The new service will be available as early as July, 2008.

The DPB service is tailored for power customers that have large, volatile gas demands, downstream of Union Gas -- primarily on TransCanada Pipeline’s (TCPL) system.  The DPB service is designed to integrate seamlessly with TCPL’s Short-Notice Firm Transportation (FT-SN) service.

DPB is Union’s fourth new service introduced to serve the needs of natural gas power producers since 2006, following last year’s open season for High Deliverability Storage and two new, flexible, short notice balancing services -- Upstream Pipeline Balancing and Firm All Day Storage (F24-S).  Union Gas is investing in storage deliverability infrastructure in Ontario to provide these services. The DPB service offering is based on forbearance from storage regulation by the Ontario Energy Board as decided in their 2006 Natural Gas Electricity Interface Review.

"Union Gas is proactively responding to the requirements of the Ontario power market for new gas services." said Steve Baker, vice-president of business development and commercial accounts, Union Gas Limited.  "The DPB service, along with our other new Dawn-based storage services will provide additional customer flexibility in managing their intra-day balancing and gas requirements on very short notice – integrating the value at Dawn with end use power plant requirements."

Open Season Contact

The open season closes Tuesday, April 24, 2007.  Those wishing additional information on the open season should visit Union’s website www.uniongas.com/openseason or contact their sales representative or:

Union Gas is an integrated natural gas storage, transmission and distribution company serving about 1.3 million residential, commercial and industrial customers in more than 400 communities in northern, southwestern and eastern Ontario.  The company also provides storage and transportation services to other utilities and energy market participants in Ontario, Quebec and the United States. Union Gas is a Spectra Energy company.

Spectra Energy Corp (NYSE: SE) is one of North America’s premier pure play natural gas midstream companies serving three key links in the natural gas value chain:  gathering and processing, transmission and storage and distribution. For close to a century, Spectra Energy and its predecessor companies have developed critically important pipelines and related energy infrastructure connecting natural gas supply sources to premium markets. Based in Houston, Texas, the company operates in the United States and Canada approximately 17,500 miles of transmission pipeline, 265 billion cubic feet of storage, natural gas gathering and processing, natural gas liquids operations and local distribution assets. Spectra Energy Corp also has a 50 percent ownership in DCP Midstream, one of the largest natural gas gatherers and processors in the United States. Visit www.spectraenergy.com for more information.