Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

On July 16, 2008, Westcoast Energy Inc., (Westcoast), a subsidiary of Spectra Energy Corp, issued 250 million Canadian dollars (US$250 million equivalent) aggregate principal amount of 5.60% Medium Term Notes due January 16, 2019 (the Notes). The Notes were offered only in Canada under a short form base shelf prospectus pursuant to Canadian securities laws. The net proceeds of the offering will be used for general corporate purposes.

The Notes were issued pursuant to a trust indenture dated April 1, 1973, between Westcoast and Computershare Trust Company of Canada, as trustee as supplemented by supplemental trust indentures (the Indenture). Westcoast will pay interest on the Notes on January 16 and July 16 of each year, commencing on January 16, 2009. Westcoast may redeem some or all of the Notes at any time or from time to time pursuant to the terms of the Indenture. The Indenture contains covenants that limit the ability of Westcoast to, among other things, incur additional debt, create liens on or sell its principal assets or merge with other entities.

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