Sept. 4 (Bloomberg) -- DTE Energy Co., Enbridge Inc. and Spectra Energy Corp. agreed to spend as much as $1.5 billion to jointly develop a pipeline that will move natural gas from Ohio’s Utica Shale to markets in the Midwest and eastern Canada.
The proposed Nexus Gas Transmission system would include 250 miles (400 kilometers) of pipe capable of moving 1 billion cubic feet of gas a day to Michigan and Ontario, according to a statement today. The cost is estimated at $1.2 billion to $1.5 billion, Houston-based Spectra said in a separate statement.
Chesapeake Energy Corp., Devon Energy Corp. and Exxon Mobil Corp. have begun tapping into the Utica formation, which stretches from Kentucky to Ontario. The Ohio portion may produce as much as 5.5 billion barrels of oil and 15.7 trillion cubic feet of gas, according to the state’s Department of Natural Resources.
The proposed pipeline, which may begin operating by November 2015, is intended to deliver gas from the Utica Shale to serve power plants and industrial customers. The partners plan to hold an open season to seek customers in the fourth quarter.
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