The Nexus natural gas pipeline is ready to begin flowing up to 934mn cf/d (26mn m³/d), providing an infusion of gas to demand markets in the midcontinent in time for winter and increasing takeaway for Appalachian production.
The pipeline yesterday asked the US Federal Energy Regulatory Commission to provide approval by 26 September so the line can begin flowing on 28 September. Nexus is ready to start flows on about 258 miles (415km) of 36-inch diameter pipeline stretching from Columbiana County, Ohio, to an interconnection with DTE Gas in Washtenaw County, Michigan. The project is also ready to bring the Hanoverton compressor station in Columbiana County on line, as well as related metering and regulating facilities.
The facilities would allow Nexus to provide open access transportation service on the project. The project's developers plan to issue a request to FERC for a few remaining facilities at a later date.
Nexus and Energy Transfer's Rover pipeline were designed to funnel inexpensively produced Appalachian gas to the midcontinent and into Canada. The 3.25 Bcf/d Rover line in late August brought its last laterals and compressor stations into service. The two projects are expected to result in higher demand for Marcellus and Utica shale gas, likely adding support to prices in the Appalachian production region.
Spot prices at Dominion Transmission South have averaged $2.39/mmBtu since Rover began flows, more than double its year-earlier value amid increased takeaway capacity and hotter weather this year.
