NEXUS Pipe Revved Like a Race Car, Waiting for FERC Green Flag

NEXUS is a $2 billion, 255-mile interstate natural gas pipeline that will run from Ohio through Michigan and eventually to the Dawn Hub in Ontario, Canada. Its purpose is to move Utica and Marcellus Shale gas from an over-saturated market in the northeast to markets in the Midwest and Canada. It is a joint venture between DTE Energy and Spectra Energy. Last December, the Federal Energy Regulatory Commission issued a positive final Environmental Impact Statement for the project (see FERC Approves NEXUS Pipeline, Project on Track for 2017). The remaining obstacle for NEXUS is to obtain a certificate of public convenience and necessity from FERC, to begin construction. NEXUS had hoped to have that approval in hand on Feb. 3rd, when FERC issued a flurry of such certificates. However, NEXUS didn’t get one (see In FERC’s Game of Musical Chairs, NEXUS Pipeline Left Standing). That led some to ask, Is there still a market need for the NEXUS Pipeline project? (see Has the Clock Run Out for NEXUS Pipeline?). According to NEXUS president James Grech, you can lay those doubts and fears to rest. At the Utica Capital Midstream Seminar held earlier this week, Grech told audience members that the project is a “race car sitting there revved and all ready to go,” just waiting for a full quorum at FERC to green light (or rather wave the green flag) so they can begin construction. Grech indicates the project is ready to go, and WILL go, as soon as FERC approves it. That is, if a lawsuit by the CORNballs doesn’t derail it…

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