UPDATE 1-Spectra signs New York, New Jersey pipeline deals

HOUSTON Dec 28 (Reuters) - Pipeline company Spectra Energy Corp (SE.N) said on Monday that it signed binding deals to expand two existing pipeline systems to deliver natural gas to markets in New York and New Jersey.

Spectra's agreements with Chesapeake Energy Corp (CHK.N), Consolidated Edison Inc (ED.N) and Statoil ASA (STL.OL) will let it expand its existing Texas Eastern and Algonquin pipeline systems, the Houston company said.

Chesapeake and Statoil are joint venture partners developing the Marcellus Shale gas field in the U.S. Northeast. The Marcellus Shale is said to hold vast amounts of natural gas, but it needs more infrastructure to transport the fuel to market.

The proposed pipeline could transport up to 800 million cubic feet per day of new natural gas supplies to the region and could be in service in the fourth quarter of 2013, Spectra said. (Reporting by Anna Driver in Houston. Editing by Robert MacMillan)