New natural gas pipeline will link Utica Shale to Midwest and Canada

Spectra Energy Corp., Enbridge and DTE Energy are joining to develop a new complex of pipelines to move natural gas from the Ohio Utica shale to markets throughout the Midwest and Canada, Spectra said Tuesday.

The three companies have completed a memo of understanding to develop the NEXUS gas transmission system, which will originate in northeastern Ohio and have the capacity to transport one billion cubic feet per day of natural gas.

The new line will use established utility corridors in Michigan and an existing pipeline to connect to the Ontario market. The new pipeline will serve local gas distribution companies, power generators and industrial users throughout Ohio, Michigan and Ontario.

The companies said that they have received  sufficient levels of interest from prospective customers to go ahead with the project.  The venture plans an open season in the fourth quarter of this year for contracts to use the NEXUS, and tentatively have scheduled start o operations by November 2015, depending on final market demand.