Nexus Gas Transmission LLC received approval from the U.S. Federal Trade Commission to move forward with its planned acquisition of a natural gas pipeline in Ohio.
Nexus signed an agreement earlier this year to acquire Generation Pipeline LLC, a fully contracted 355-MMcf/d intrastate pipeline, from North Coast Gas Transmission LLC and other sellers for $160 million. In September, the FTC claimed the transaction is "anticompetitive" because of a noncompete clause in the sale agreement that prevents North Coast from competing to provide gas transportation in parts of Lucas, Ottawa and Wood counties in Ohio for three years after deal completion.
Under the FTC's order, Nexus will remove the noncompete clause from the sale agreement, according to a Dec. 13 news release. The order was unanimously approved by the commission after a 30-day public comment period.
Nexus is a 50/50 joint venture of DTE Energy Co. and Enbridge Inc.