DTE Energy (NYSE: DTE, Stock Forum), Enbridge Inc. (TSX: T.ENB, Stock Forum) and Spectra Energy Corp. (NYSE: SE, Stock Forum) said that they have agreed to the execution of a Memorandum of Understanding to jointly develop the NEXUS Gas Transmission system, a project that will move growing supplies of Ohio Utica shale gas to markets in the U.S. Midwest, including Ohio and Michigan, and Ontario, Canada.
The proposed NEXUS Gas Transmission project will originate in northeastern Ohio, include approximately 250 miles of large diameter pipe, and be capable of transporting one billion cubic feet per day of natural gas.
According to the press release, the line will follow existing utility corridors to an interconnect in Michigan and utilize the existing Vector Pipeline system to reach the Ontario market. Upon completion of the project, Spectra Energy will become a 20% owner in Vector Pipeline.
Currently, Vector Pipeline is a joint venture partnership between Enbridge, with a 60% interest, and DTE Energy, with a 40% interest.
The new pipeline will serve local distribution companies, power generators and industrial users in the Ohio, Michigan and Ontario markets. It will include interconnects with Michigan Consolidated Gas Company, Consumers Energy and, through the Vector Pipeline, the Enbridge Tecumseh Gas Storage facility and Union Gas' Dawn Hub, both in Ontario.
An open season for the project is planned for fourth quarter 2012, with a targeted in-service as early as Nov. 2015, depending on final market demand and commitments.
DTE is a Detroit-based diversified energy company involved in the development and management of energy-related businesses and services nationwide.
Enbridge is a Calgary-based North American leader in delivering energy and one of the Global 100 Most Sustainable Corporations.
Spectra is one of North America's premier natural gas infrastructure companies serving three key links in the natural gas value chain: gathering and processing, transmission and storage, and distribution.
On Tuesday, Enbridge was trading at $38.29 a share. The company has a market cap of $30.6 billion, based on 797.2 million shares outstanding. The 52-week high and low was $42.23 and $30.76 respectively.