WASHINGTON (Legal Newsline) — The Federal Trade Commission (FTC) announced Feb. 16 that Enbridge Inc. and Spectra Energy Corp have agreed to settle allegations that their merger would harm competition for pipeline transportation of natural gas in three production areas off the coast of Louisiana.
The three markets that would have been affected, according to the FTC, are Green Canyon, Walker Ridge and Keathley Canyon – three offshore natural gas producing areas in the Gulf of Mexico. The merger between the two defendants would have meant that their two pipelines would be the closest to certain wells, making them the cheapest option.
To settle the allegations, the two companies have agreed to certain conditions that will help preserve competition in the affected areas.
The FTC voted 2-0 to issue a complaint and accept the proposed consent order, which will go before public comment for 30 days until March 20. The FTC said it will file the order into the Federal Register shortly.