Express

The Rockies Express Pipeline (REX) may be the super highway for natural gas when it is completely ramped up, but pipeline competitors already are forecasting a gap between the ever-growing production in the Rocky Mountains and takeaway demand, which together will require another major pipe system within three or four years.

Dominion has secured firm, long-term commitments to receive natural gas from Rockies Express (REX) and deliver it to major markets in the Northeast and Mid-Atlantic regions, the company said Thursday.

The shortest distance between two points doesn’t cut it in the world of natural gas pipelines. By the beginning of 2009, when Phase III of the new Rockies Express (REX) pipeline is operational, it will be cheaper to haul natural gas nearly 2,000 miles from the Rocky Mountain fields of Colorado, Wyoming, Utah and Montana to the northeastern megalopolis than it will be to carry gas approximately 1,300 miles from the Gulf Coast to the Northeast, according to a new report by Bentek Energy.

The shortest distance between two points doesn’t cut it in the world of natural gas pipelines. By the beginning of 2009, when Phase III of the new Rockies Express (REX) pipeline is operational, it will be cheaper to haul natural gas nearly 2,000 miles from the Rocky Mountain fields of Colorado, Wyoming, Utah and Montana to the northeastern megalopolis than it will be to carry gas approximately 1,300 miles from the Gulf Coast to the Northeast, according to a new report by Bentek Energy.

While the western phase of the Rockies Express Pipeline grabbed most of the attention last Thursday, FERC also approved a number of other key pipeline and liquefied natural gas (LNG) projects, as well as two asset purchases.

While the western phase of the Rockies Express Pipeline grabbed most of the attention Thursday, FERC also approved a number of other key pipeline and liquefied natural gas (LNG) projects, as well as two asset purchases.

The re-connection of western supply basins to eastern markets by the massive Rockies Express (REX) and other pipeline projects (see related story) and the “somewhat delayed” arrival of more liquefied natural gas (LNG) imports suggests higher Henry Hub prices and “reasonable” western region locational basis, both of which will continue to facilitate development of domestic resources, according to Wood Mackenzie.

The re-connection of western supply basins to eastern markets by the massive Rockies Express (REX) and other pipeline projects and the “somewhat delayed” arrival of more liquefied natural gas (LNG) imports suggests higher Henry Hub prices and “reasonable” western region locational basis, both of which will continue to facilitate development of domestic resources, according to Wood Mackenzie.

To accommodate additional supply coming in from the Rockies Express pipeline and from the Midcontinent and Canada, Boardwalk Pipeline Partners LP said Wednesday that subsidiary Texas Gas Transmission LLC is planning a third expansion of its gas storage operations that would add 113,900 MMBtu/d of deliverability and 10.25 trillion Btu of working gas capacity to its total storage operations, which includes nine fields in Indiana and Kentucky.