(Continued from issue 105(2007)24, pp. 56-63) Kinder Morgan's Rockies Express Pipeline needs capacity downstream from its Clarington, Ohio, terminus to expand before it can fully address growing demand in the Northeast. The availability of new takeaway capacity from projects such as those announced by Tennessee Gas and TETCO will be a key factor determining whether REX (Rockies Express Pipeline) will serve Northeast demand with incremental supply or will simply displace gulf coast supplies currently serving that market. REX's capacity constraints at the east end of the system and their eventual resolution will add to the uncertainty surrounding flow displacements, supply-demand shifts, and regional pricing adjustments brought about by REX. Rockies prices will rise significantly relative to other producing basins. If the east end of REX is constrained, additional demand does not merge to mitigate the displacement of supplies back into the gulf, and if net incemental production continues to add to gulf supplies, it is not unreasonable to expect that Rockies prices could even trade at a premium to gulf prices. The first article of this series examined the background of the REX pipeline project and analyzed the effect on US natural gas markets of REX Phases I and II. This concluding article will detail the market shifts expected as a result of the combination of REX Phase III's completion and downstream capacity constraints.


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    Title :

    US natural gas - conclusion. Rockies express faces downstream bottlenecks


    Additional title:

    Die Rockies-Express-Erdgaspipeline und die sich daraus ergebenden Änderungen des Marktes und des Angebots. Teil 2


    Contributors:

    Published in:

    Oil and Gas Journal ; 105 , 25 ; 68-73


    Publication date :

    2007


    Size :

    6 Seiten, 7 Bilder



    Type of media :

    Article (Journal)


    Type of material :

    Print


    Language :

    English




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