AEP, Chesapeake, Spectra announce Ohio pipeline for Utica gas

Posted: Dec 22, 2011 4:47 PM EST Updated: Dec 22, 2011 4:59 PM EST

American Electric Power, Chesapeake Energy and Spectra Energy Corp.’s Texas Eastern Transmission this week announced plans to expand the Texas Eastern pipeline system in Ohio to take advantage of natural gas from Utica and Marcellus shale.

The expanded system 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 power generation.

The OPEN (Ohio Pipeline Energy Network) project brings together the largest producer and leaseholder in the Utica shale play, the largest power generator in the region and a pipeline company with more than 60 years of safe and reliable operational history in the state of Ohio . The project will involve approximately 70 miles of new pipeline and create an additional 1 billion cubic feet per day (Bcf/d) of transportation capacity to serve local distribution companies, industrial users and gas-fired power generators in the Ohio market, as well as markets along the Texas Eastern system.

As part of the project, AEP will pursue transportation capacity that would enable the company to connect Ohio gas supplies with its gas-fired power plants in the Midwest. Chesapeake, which holds 1.5 million net acres, by far the largest acreage position in the Utica play, is pursuing capacity to access the substantial Texas Eastern markets spanning from the Gulf of Mexico to the North

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