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REX Cites Regulatory Delays in Adjusting REX East Timetable

October 13, 2008
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Rockies Express (REX) has reassessed its progress in constructing its 1.8 Bcf/d REX-East pipeline, extending the date for completion by five months to the start of the 2009 winter heating season.

Initial REX-East service, or interim service, now is projected to start April 1, 2009, with a capacity of 1.6 Bcf/d. This will encompass deliveries to NGPL in Moultrie County, IL, Trunkline in Douglas County, IL, Midwestern in Edgar County, IL, Ameren in Moultrie County, IL, and Panhandle Eastern in Putnam County, IN.

Service to Lebanon, OH is expected to begin June 15 with a capacity of 1.6 Bcf/d, and the line should be fully in service to Clarington, OH, by Nov. 1 with a capacity of 1.8 Bcf/d, REX said.

The pipeline company said there have been delays in securing permits and regulatory approvals for construction activity across REX-East in addition to weather-related delays. "Priorities have been refocused to enable the commencement of an initial level of service on REX-East at the earliest date feasible."

The REX-East segment, when completed, will be a 638-mile, 42-inch diameter pipeline that extends from an interconnection with the eastern terminus of REX-West in Audrain County, MO, through Illinois and Indiana, terminating at an interconnection with three pipelines at the Clarington Hub in Monroe County, OH.

Much of the REX-East leg will run parallel to existing pipeline and utility corridors.

Rockies Express said further it is making no guarantees on the new dates. "Based upon the inherent uncertainties of completing a project of this magnitude, it is reasonable to expect these projected in-service dates to change. We will provide monthly updates, with our next update scheduled for Nov. 6th. Additional postings will be considered if the situation warrants."

The first half of the Rockies Express line, REX-West, a 713-mile, 42-inch diameter pipeline running from the Cheyenne Hub in Weld County, CO, to Audrain County, MO, was completed in May (see NGI, May 26).

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