New Midwest Pipeline to Tap REX’s Marcellus/Utica Gas

An exciting new market for Marcellus and Utica Shale gas may open up in the next 2-3 years in the Midwest. On a quarterly analyst conference call yesterday, Laclede Group (St. Louis-based natural gas utility) said they plan to build a 60-mile pipeline from St. Louis through southwest Illinois and connect to the Rockies Express (REX) and Panhandle Eastern Pipeline (see the map below). That will bring low-cost Marcellus and Utica Shale gas to the utility, not only for resale to gas customers, but also potentially for new natgas-powered electric plants planned to replace retiring coal-fired plants. The project will cost $170-$200 million and take 2-3 years to complete, according to Laclede CEO Suzanne Sitherwood…

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