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US: FTC imposes conditions on NEXUS Gas purchase of pipeline

 |  September 15, 2019

Joint venture NEXUS Gas and its member companies—DTE Energy and Enbridge—will settle Federal Trade Commission (FTC) charges that the joint venture’s acquisition of an Ohio pipeline would likely harm competition to provide natural gas pipeline transportation in a three-county area that includes Toledo, Ohio.

According to the FTC’s complaint, NEXUS, which is owned in equal shares by DTE and Enbridge, agreed in January to pay US$160 million for Generation Pipeline. Generation owns and operates a 23-mile pipeline in Toledo, Ohio area.

The complaint alleges that NEXUS’s purchase of Generation from North Coast Gas Transmission and several other owners is anticompetitive due to a non-compete clause that keeps North Coast from competing to provide natural gas pipeline transportation, for three years after the acquisition closes, in parts of the Ohio counties of Lucas, Ottawa, and Wood.

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