Rockies Express Pipeline

We still, to this day, marvel at how Tallgrass Energy Partners turned around what looked like a financial disaster, into a financial bonanza. Tallgrass built the Rockies Express (REX) pipeline that stretches from Colorado and Wyoming all the way to Ohio just in time for the shale revolution to hit. Whoops! Talk about bad timing! A significant portion of REX, it’s Zone 3 pipeline from Missouri to Ohio, was in danger of drying up in 2012 because of the increase in Marcellus/Utica gas being produced (see REX NatGas Pipeline Faces Stiff Competition from Marcellus). Tallgrass did an about face, reversing the flow of REX to run from Ohio to Missouri a year later, in 2013 (see REX Reverses Pipeline Flow from OH for Mystery Utica Customer). Since that time volumes along the Zone 3 portion of REX have done nothing but increase. A lot of Marcellus/Utica gas now flows from our region to the Midwest by hitching a ride on REX. The strategy of reversing the pipeline’s flow turned what was shaping up to be a disaster, into a bonanza. Yesterday Tallgrass issued its fourth quarter and full year 2017 update. While Tallgrass (as other pipeline companies) did well in 2017 in general, much of the company’s success came “as a result of incremental capacity sales in Zone 3” of the REX pipeline…
Read More “Tallgrass has “Outstanding Quarter” Thx to REX Pipeline in the M-U”

The Rockies Express Pipeline (REX) was originally built from Colorado and Wyoming to Monroe County, OH to bring natural gas from west to east. In 2015, REX began the process of reversing the flow for a large and important section of the pipeline–to send gas from the Utica/Marcellus to the Midwest. By January of this year, REX had reversed and was flowing 2.6 billion cubic feet per day (Bcf/d) of gas from Clarington, OH to Mexico, MO (see REX Pipe Completes Expansion Today, 2.6 Bcf/d Flowing East-to-West). Except REX wanted more! The demand is there, and REX announced in February they were working on a plan to flow another 150 million cubic feet per day (MMcf/d) of natgas from Ohio to the Midwest (see REX Pulls Rabbit Out of Pipeline – Adding Another 150 MMcf/d). REX ran a new open season and got commitments for 180 MMcf/d, and began flowing it in June, according to an announcement released yesterday. The announcement also shared that REX (independent subsidiary of Tallgrass Energy) has a new CEO: Crystal Heter. Crystal was once an engineering intern at REX and has steadily risen through the ranks to now sit in the big chair. We congratulate her! Here’s the info about REX’s latest coup in adding another 180 MMcf/d of capacity to its Zone 3, reversed pipeline…
Read More “Rockies Express Pipeline Adds Another 180 MMcf/d from Ohio to Ill.”

The Rockies Express Pipeline (REX), originally built from Colorado and Wyoming to Monroe County, OH to bring natural gas from west to east, last year reversed the flow for a large and important section of the pipeline. On August 1, 2015 the section of REX from Monroe County, OH to Mexico, MO reversed the flow and began to carry 1.8 billion cubic feet per day (Bcf/d) of Utica and Marcellus Shale gas to the Midwest, including to the greater Chicago area. REX has been hard at work on plans to expand capacity even more by beefing up compressor stations along portions of the pipeline. REX filed a plan with FERC to add another 800 million cubic feet per day (MMcf/d) of capacity along the same portion of the reversed pipeline–for a grand total of 2.6 billion cubic feet per day (Bcf/d). In mid-December, the first 200 MMcf/d of capacity came online (see Reversed REX Pipeline Goes from 1.8 Bcf to 2.0 Bcf). A week later another 250 MMcf/d was brought online (see REX Pipeline Adds Yet More Capacity, Now Flowing Extra 450 MMcf/d). In January, the final 350 MMcf/d went online, and REX is now flowing 2.6 Bcf/d of Utica/Marcellus gas to Chicagoland and beyond (see REX Pipe Completes Expansion Today, 2.6 Bcf/d Flowing East-to-West). Expansion complete. Except–Tallgrass says they can squeeze another 150 MMcf/d out of the reversed pipeline! Next month they’re going to run a new open season to sell yet more capacity, which would bump what had been 2.6 Bcf/d to 2.75 Bcf/d…
Read More “REX Pulls Rabbit Out of Pipeline – Adding Another 150 MMcf/d”

The Rockies Express Pipeline (REX), originally built from Colorado and Wyoming to Monroe County, OH to bring natural gas from west to east, last year reversed the flow for a large and important section of the pipeline. On August 1, 2015 the section of REX from Monroe County, OH to Mexico, MO reversed the flow and began to carry 1.8 billion cubic feet per day (Bcf/d) of Utica and Marcellus Shale gas to the Midwest, including to the greater Chicago area. REX has been hard at work on plans to expand capacity even more by beefing up compressor stations along portions of the pipeline. REX filed a plan with FERC to add another 800 million cubic feet per day (MMcf/d) of capacity along the same portion of the reversed pipeline–for a grand total of 2.6 billion cubic feet per day (Bcf/d). In mid-December, the first 200 MMcf/d of capacity came online (see Reversed REX Pipeline Goes from 1.8 Bcf to 2.0 Bcf). A week later another 250 MMcf/d was brought online (see REX Pipeline Adds Yet More Capacity, Now Flowing Extra 450 MMcf/d). Beginning today, the final 350 MMcf/d is coming online. REX is now flowing 2.6 Bcf/d of Utica/Marcellus gas to Chicagoland and beyond…
Read More “REX Pipe Completes Expansion Today, 2.6 Bcf/d Flowing East-to-West”

Last Wednesday MDN (via a story from NGI) brought you the good news that the Rockies Express Pipeline (REX) had begun to flow an extra 200 million cubic feet per day (MMcf/d) of natural gas from East to West along the pipeline–moving more Utica and Marcellus gas from Ohio to places like the Chicago area (see Reversed REX Pipeline Goes from 1.8 Bcf to 2.0 Bcf). REX previously filed a plan with the Federal Energy Regulatory Commission (FERC) to add another 800 million cubic feet per day (MMcf/d) of capacity along the reversed portion of the pipeline. In late November, FERC gave REX the go-ahead to start additional compressors added at three locations along the route. The plan is to have all of the extra 800 MMcf/d flowing by the end of this year. On Wednesday, as we noted, 200 MMcf/d of additional capacity kicked in. Then on Friday, NGI reported another 250 MMcf/d was added, meaning 450 MMcf/d was added to REX’s capacity in a single week. That’s another 450 MMcf/d of yummy, clean-burning fracked Utica/Marcellus shale gas flowing to the Midwest that wasn’t a week ago. We love it when a plan comes together…
Read More “REX Pipeline Adds Yet More Capacity, Now Flowing Extra 450 MMcf/d”

Just a few years ago that Tallgrass Energy, majority owner of the Rockies East Express (REX) pipeline–a 1,712-mile pipeline which runs from Colorado and Wyoming to Ohio–had an “Oh crap!” moment. The pipeline was built to bring then-abundant natural gas from the West to markets in the Midwest (like Chicago) and the East–via connections with other pipelines. Then the Marcellus and Utica happened, forever changing the natural gas dynamic in the United States. Nobody in the Midwest and East wanted western gas anymore. What to do?! Tallgrass knows how to pivot, and pivot they did–deciding to reverse the flow for a portion of the REX pipeline (see REX Reverses Pipeline Flow from OH for Mystery Utica Customer). Their bright idea worked, and beginning last August, the REX pipeline from Monroe County, OH to Mexico, MO reversed its flow (see 1.8 Bcf/d of Marcellus/Utica Gas Heads West on REX Starting Aug 1). What was a huge negative turned into a big positive for Tallgrass. Now Marcellus/Utica rides the pipeline west every single day–and there’s no sign of it letting up. If anything, REX will reverse more of the line at some point. That got Tallgrass to thinking, maybe REX had become the crown jewel of the company. So Tallgrass has decided to buy out one of partners in REX, Sempra Energy, to the tune of $440 million…
Read More “Tallgrass Buys Out Sempra’s Portion of REX Pipeline for $440M”

On August 1, the Rockies Express Pipeline reversed its direction on a portion of the pipeline called Zone 3 and began flowing 1.8 billion cubic feet per day (Bcf/d) of Marcellus and Utica Shale gas to the Midwest (see 1.8 Bcf/d of Marcellus/Utica Gas Heads West on REX Starting Aug 1). REX Zone 3 stretches from Clarington, OH to Mexico, MO (see the map). Further good news. The Federal Energy Regulatory Commission (FERC) has granted a favorable Environmental Assessment (EA) for REX to beef up capacity along Zone 3 by expanding two existing compressor stations and building three new compressor stations along the Zone 3 section. We also know who got the contract to build it…
Read More “Reversed REX Pipeline from Marcellus/Utica to Midwest Will Expand”