Federal Energy Regulatory Commission (FERC) Approves NEXUS Pipeline

The long-awaited and controversial NEXUS natural gas transmission pipeline has gained federal approval from FERC in late August. This comes after months of stagnancy due to the lack of a FERC commissioner board quorum. President Trump appointed Neil Chatterjee and R​obert Powelson to the board to give FERC the quorum needed to make decisions on projects such as NEXUS. The 257-mile pipeline will carry around 1.5 billion cubic feet of gas per day from eastern Ohio into Michigan, Ontario and northern Ohio. The project, led by DTE and Enbridge, is expected to cost $2 billion and bring 5,325 jobs to Ohio. If all goes as planned for Enbridge, the pipeline construction will be completed in 2018 and be in service that same year.

Although the project received federal approval, there are still more hurdles to come before construction begins. Grassroots movements such as Coalition to Reroute Nexus (CORN) along with many other environmental activist groups are still fighting the construction and implementation of this new pipeline. Additionally, the pipeline still needs water quality permits from the Ohio EPA and the U.S. Army Corps of Engineers. Despite these obstacles, the operators of the pipeline remain confident construction and operation will begin next year.

If NEXUS begins moving gas from eastern Ohio, we may see an effect in gas pricing in that region, similar to what happened with the Rover pipeline. If you would like to learn more about how these pipelines could affect your natural gas supply rates, check out our previous blog entitled, “Why is Dominion (DEO) Basis up when gas is so plentiful?”



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