FTC Preserves Competition in Merger of Enbridge Inc. and Spectra Energy Corp

Federal Trade Commission press release ------ Energy infrastructure companies Enbridge Inc. and Spectra Energy Corp have agreed to settle Federal Trade Commission charges that the proposed merger of Enbridge and Spectra likely would harm competition in the market for pipeline transportation of natural gas in three production areas off the coast of Louisiana. According to the FTC's complaint, the merger likely would reduce natural gas pipeline competition in three offshore natural gas producing areas in the Gulf of Mexico -- Green Canyon, Walker Ridge and Keathley Canyon --- leading to higher prices for natural gas pipeline transportation from those areas. In portions of the affected areas, the FTC alleged, the merging parties' pipelines are the two pipelines located closest to certain wells and, as a result, are likely the lowest cost pipeline transportation options for those wells. Under the settlement with the FTC, the companies have agreed to conditions that will preserve competition in those areas. For more on FTC preserves competition in merger of Enbridge Inc. and Spectra Energy Corp click on the picture below to read the release.