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US production of natural gas is booming and as demand rises more supply is needed -- my next guest is making big plans to capitalize on that.
Joining me now out of Fox Business exclusive -- -- he -- Spectra Energy CEO and president busy times for you the infrastructure guys are you.
-- -- building -- a huge pipeline that may stretch from New Jersey all the way under lower Manhattan what would it bring to consumers at what -- So that's a big plan that we're talking -- we're gonna invest about 800 to a billion dollars in that pipeline and create savings of four to 500 million dollars a year.
For energy consumers and new York and New Jersey cleaner.
Obviously than coal or oil.
Abundant because it's domestic.
Producing 5200 jobs while we build that and then the ongoing energy saying so we're really excited to be -- you have a big supporter with Mayor Bloomberg crude.
Doesn't really like coal.
Well you know his his view he's got and -- New York plan to get.
Obviously on cleaner fuels.
Opportunity to build natural gas vehicle roots if you -- -- neat New York so.
That helps him and I think across in New Jersey is see the same type of plan by by Governor Christie and.
And natural gas is a huge winner let's explain to some of our viewers who might not live in New York City -- -- often see.
Big trucks pull up -- high rise apartments usually what are called pre war built before world war two and what they're doing is they're putting.
Oil -- oil down under the sidewalks.
This is that very old style dirty rain and you -- -- switch it over to natural gas which is what my house has for example and by the way it's still work when we lost power during Hurricane Irene in the recent -- so.
It is much cleaner but -- you have push back from some people who.
Are concerned they look at the explosion in San Bruno California natural gas explosion they say this this is so scary and will be under our houses what do you say to that.
What we respect that and I think we've done a lot to change pipeline that roots and stuff.
More importantly we've changed pipeline technology what happened in standard -- the latest technology we spend.
Three quarters of a million dollars a year at Specter just maintaining the types three quarters of a billion billion with a B billion so that's like billion -- stadium every year.
Just in maintenance capital and we're going to be using the highest safety standards and technology for this new pipeline New -- -- -- sometimes you know three quarters of an inch thick steel pipe.
Well okay so that you've got a total about 191000 miles of pipeline -- throughout the United States and Canada.
Fifteen miles would be under the New York plan and an illicit you've got actors complaining mark for a full of for example some people but.
You don't have environmental groups getting too upset because natural gas is so clean.
Using infrastructure guys what about liquid natural gas is that something that -- building out as well.
Yeah LNG's interest in a few years ago we -- we are gonna be importing gas and the United States but through the wonders of technology and the US always does great with technology.
We now have domestic natural gas.
Meaning that maybe there's an opportunity not to import gas but actually export natural gas.
So what you're seeing -- this is a lot of these liquefied natural gas plants perhaps being turned around and -- -- should gas abroad.
I'll tell you what hasn't turned around that's the falling natural gas prices head down just precipitously over the past three years down 67%.
Right by the way it was fourteen dollars per million British thermal units it's hovering around three or four dollars depending on the day.
But how do you make money when the price is so -- I know -- in the infrastructure business but.
How can -- -- -- -- potential stockholder sanction -- Spectra Energy where it is sort of that momentum going to come for your company.
Well absolutely should -- because -- -- wanna products relatively low price is clean and it's blowing people's energy bills they're gonna use it.
So we're building -- pipelines that and take that cheaper natural gas.
To give to our consumers so going -- -- -- -- -- tough economic times natural gas users will be very pleased to see what their bills look like this this winter.
Greg the stock up 20% over the past year for Spectra Energy ticker symbol SE greatly bill as the president and CEO good Canadian -- the living in Houston working with -- cats will follow the story thank you so much you very much any.
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