Spectra Energy (SE), American Electric Power (AEP) and Chesapeake Energy’s (CHK) Chesapeake Energy Marketing subsidiary said today they have formed an agreement to advance development of the Ohio Pipeline Energy Network.
The network is a proposed expansion of the Texas Eastern pipeline system that will connect Ohio’s Utica and Marcellus shale gas supplies with the fast-growing markets attached to the Texas Eastern system, in particular natural gas-fired generation.
The project will involve about 70 miles of new pipeline and create an additional one billion cubic feet per day of transportation capacity to serve local distribution companies, industrial users and gas-fired power generators in the Ohio market and in markets along the Texas Eastern system.
The companies did not disclose the financial terms of the partnership.
They said a binding open season for the project is planned for the first quarter of the new year, with projected in-service slated for November 2014.