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Application approved for transport of natural gas

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Hydrocarbon Engineering,

Spectra Energy Corp has announced that the Ontario Energy Board has approved applications from Union Gas Limited and Enbridge Gas Distribution Inc. for 15 year contracts to move natural gas from the Appalachian Basin into the Union Gas Dawn Hub on the proposed NEXUS Gas Transmission system beginning in November 2017.

"The NEXUS project represents a tremendous opportunity for customers to access natural gas from both the Utica and Marcellus shale plays and move it through markets in Ohio and Michigan to the Dawn Hub, the second largest physically traded gas hub in North America," said Bill Yardley, President of US Transmission and Storage for Spectra Energy. "These approvals confirm strong, long term market support for our route and the project from demand pull markets represented by these local distribution companies in Ontario."

Establishing a direct transportation link between Ontario and the Appalachian Basin is an important opportunity that will provide low cost supplies to Ontario's growing market. In addition, NEXUS will provide increased natural gas supply diversity, security and reliability to other customers in Ohio, Michigan and Chicago.

Importantly, a number of industrial facilities and power generators in these areas have also recently signed interconnected agreements with the project. By expanding access to natural gas in these markets, NEXUS will provide consumers across the region with affordable, clean burning and abundant natural gas to help meet the growing demand for cleaner power generation, industrial and commercial use, and home heating.

NEXUS is a joint venture between Spectra Energy and DTE Energy. Union Gas is a subsidiary of Spectra Energy.

Adapted from press release byFrancesca Brindle

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