Will TransCanada’s Lower Pipeline Rates Jeopardize Nexus/Rover?

low-offerTwo weeks ago MDN told you that TransCanada is attempting to block Marcellus/Utica gas from entering the eastern Canadian market by lowballing pipeline transportation costs from western Canada (see TransCanada Launches Open Season to Lowball Marcellus/Utica Gas). How much are they lowballing? TransCanada is offering transportation costs of $0.66 per thousand cubic feet (Mcf). The proposed Nexus pipeline, which crosses Ohio and connects to a pipeline in Michigan that would go on from there to Canada, is charging $1.21/Mcf. The proposed Rover pipeline which also would connect to Canada is charging $1.01/Mcf. An BTU Analytics analyst does a deep dive and asks the question (our words, not hers): Will TransCanada’s lowball prices kill the Nexus and/or Rover?…

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