NEXUS Pipe Aims at Local Utilities, Signs Columbia Gas of Ohio

exclusiveSpectra Energy’s NEXUS Pipeline, a $2 billion, 255-mile interstate pipeline that will run from Ohio through Michigan and eventually to the Dawn Hub in Ontario, Canada, continues to build support and a good head of steam. In July the Federal Energy Regulatory Commission (FERC) issued a favorable draft Environmental Impact Statement for the project, a sure sign that FERC intends to approve it (see Spectra’s NEXUS Pipeline Gets Favorable Draft EIS from FERC). Earlier this week MDN reported the Ohio Environmental Protection Agency has granted air emissions permits to NEXUS so they can build five compressor stations (see OH EPA Grants Permits for 5 NEXUS Pipeline Compressor Stations). Even more good news: MDN has exclusively learned that Columbia Gas of Ohio (CGO) has signed a long-term contract to ship 50,000 decatherms per day (50 million cubic feet per day) of natural gas along the NEXUS from two points in Ohio and Pennsylvania to a point in Sandusky County, OH. This new agreement appears to be a shift in strategy by Spectra. How? CGO is a natural gas utility company–delivering gas to end users like residences and businesses. In industry parlance CGO is an LDC, or “local distribution company.” Much of the focus by the media on NEXUS has been that gas flowing through the pipeline will end up exported to Canada. This newest agreement shows that at least some of the gas flowing through NEXUS will stay in the region, distributed by LDCs. Cheap Utica (and Marcellus) gas will benefit Ohio residents and residents in surrounding states. Here’s the details of the CGO/NEXUS agreement…

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