Eastward

As production from the Marcellus Shale grows and gas continues to trudge eastward on the Rockies Express Pipeline (REX), gas-fired power generation and exports to Canada are about the only opportunities to relieve Northeast oversupply, Barclays Capital analysts said in a note Tuesday.

Long-suffering Rockies producers are seeing the light at the end of the basis tunnel as the landmark Rockies Express Pipeline LLC (REX) wends its way eastward. But what the industry has yet to open its eyes to is the trouble brewing down South, says an industry analyst.

Long-suffering Rockies producers are seeing the light at the end of the basis tunnel as the landmark Rockies Express Pipeline LLC (REX) wends its way eastward. But what the industry has yet to open its eyes to is the trouble brewing down South, says an industry analyst.

With the mammoth 1,600-mile Rockies Express Pipeline (REX) making its way eastward, liquefied natural gas (LNG) terminals scheduled to come on line in the Gulf Coast region over the next two to three years and increasing amounts of gas flowing from Texas basins, there will be a number of significant changes to the market, many of which aren’t yet appreciated, said Bentek Energy LLC CEO Porter Bennett.

With the mammoth 1,600-mile Rockies Express Pipeline (REX) making its way eastward, liquefied natural gas (LNG) terminals scheduled to come on line in the Gulf Coast region over the next two to three years and increasing amounts of gas flowing from Texas basins, there will be a number of significant changes to the market, many of which aren’t yet appreciated, said Bentek Energy LLC CEO Porter Bennett.

Robust production in Oklahoma and North Texas has spawned another project to move gas eastward to markets in Florida and the Northeast, and this one’s a big one.

A winter storm sweeping its way eastward into the central U.S. and Canada, along with prior-day support from the December futures contract’s advance of 28 cents on Monday, were responsible for rising prices Tuesday at most points. Several instances of flat to a little more than a nickel lower, mostly in the Gulf Coast and Northeast, averted a clean sweep of gains.

After trading lower for the first half of the day Friday on the New York Mercantile Exchange, November natural gas futures rallied in the afternoon to settle at $7.241, up 10.9 cents on the day and a stunning $1.582 higher than the previous week’s close.

Add another pipeline project to the list of those that wouldmove gas eastward from the burgeoning Chicago market center.Crossroads Pipeline, in conjunction with CNG Transmission and EastOhio Gas, scheduled an open season for firm transportationbeginning Monday, March 2 and concluding April 20.