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Nexus Cleared to Start Compressor; Rover Presses FERC on CGT, Sherwood Laterals

Nexus Gas Transmission LLC can begin operating one of its Ohio compressor stations, FERC said Friday, but Commission staff asked for additional evidence of restoration progress before authorizing service on another.

The Federal Energy Regulatory Commission’s Rich McGuire, director of the Division of Gas-Environment and Engineering, said Nexus may place into service the Clyde Compressor Station in Sandusky County, OH, granting a request submitted a week earlier.

“We find that Nexus has adequately stabilized the areas disturbed by construction and that restoration at this facility is proceeding satisfactorily,” McGuire wrote. “Once Nexus demonstrates restoration progress at the Wadsworth Compressor Station in Medina County, OH, we will reconsider your request for in-service of this facility.”

Heavy rainfall in the region in recent months has contributed to delays for several Appalachian takeaway projects, and FERC has signaled its intent to more closely scrutinize restoration efforts that have been complicated by the weather.

Meanwhile, Rover Pipeline LLC, an east-to-west Marcellus/Utica shale takeaway pipeline that travels a similar route to Nexus, has pressed FERC for authorization to place its final two supply laterals into service, submitting numerous photographs to the commission Thursday documenting the restoration of those lines.

Rover, which earlier this year ran afoul of FERC’s deadlines for restoration on some of its project facilities, submitted supplemental information reaffirming that its Sherwood and CGT laterals, along with an associated compressor station and two meter stations, are ready for service.

The operator said the facilities are mechanically complete, and final grading and seeding of the construction right-of-way has also been completed. Rover asked for authorization to place the facilities into service by Thursday (Nov. 1).

“Rover’s shippers have urgently requested Rover to place these facilities in service to allow their stranded natural gas supplies to be transported to Midwest markets,” the operator said.

One notable shipper that stands to benefit from the start-up of the remaining Rover laterals is Antero Resources Corp. Management for the Denver-based producer said during a 2Q2018 earnings conference call that it expects to deliver additional volumes of gas into the Midwest once the Sherwood Lateral enters service. Antero is scheduled to discuss its 3Q2018 results Thursday.

The 1.5 Bcf/d, 255-mile Nexus is backed by DTE Energy and Enbridge Inc. FERC authorized the greenfield pipeline to begin flowing volumes earlier this month.

Rover, backed by Energy Transfer, is a 3.25 Bcf/d greenfield pipeline that began partial service last fall and has since ramped up to flowing around 3 Bcf/d in its final stages of construction, NGI’s daily Rover Tracker shows.

Both projects are designed to flow east-to-west across Ohio, connecting Marcellus and Utica shale gas to markets in the Midwest and Canada. Some Rover molecules are also earmarked for the Gulf Coast.

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