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Ohio EPA grants water permit to Nexus

22 Sep 2017, 6.06 pm GMT

Ohio EPA grants water permit to Nexus

Houston, 22 September (Argus) — Canadian midstream company Enbridge's 1.5 Bcf/d (42mn m³/d) Nexus natural gas pipeline has received a key water permit from the Ohio Environmental Protection Agency (EPA).

The $2.1bn Nexus pipeline project, jointly owned by Enbridge and Michigan utility DTE Energy, will transport Appalachian shale gas to Ohio, Michigan and Ontario, Canada.

The agency is requiring the pipeline project to have and implement very detailed contingency plans for managing unanticipated releases to the environment.

Water permits have been in the spotlight recently after several other projects were cancelled or delayed because of such state permits.

The Ohio EPA has recently raised concerns to US Federal Energy Regulatory Commission (FERC) about restarting horizontal drilling for the Energy Transfer's 3.25 Bcf/d Rover pipeline project because of water permitting issues.

Energy Transfer this week received permission from the FERC to resume horizontal drilling in new locations to finish the Rover project after four months. Horizontal directional drilling was halted in new locations, after spilling an estimated 2mn USG of drilling fluids into an Ohio wetland during construction.

New York state regulators stopped Williams' 628mn cf/d Constitution pipeline by denying a key water permit. Williams is still pursuing the project.

The Nexus pipeline project initially had an expected in-service date of 1 November. Delay in regulatory approvals has moved the time line of the project most likely in the second quarter of 2018.

The FERC on 25 August approved the project. The approval was delayed as the agency lacked enough members to make major decisions for six months up until 10 August.

The project would take 7-10 months to construct once it receives FERC approval, according to Enbridge president Al Monaco.

Nexus is expected to provide an outlet for Appalachian gas.

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