US NATURAL GAS-1: Rockies Express pipeline to reshuffle gas supply, trade

The opening of the 1,663-mile Rockies Express Pipeline system, running from natural gas producing basins in Colorado and Wyoming to market in the Midwest and Northeast, will provide many US gas consumers with new access to cheaper gas from the Rocky Mountain region. This development will cause a major reshuffling of US gas transportation patterns by allowing consumers to shift their supply portfolios away from traditional supply areas in the Midcontinent and Gulf Coast to more economic production in the Rockies.This first of two articles examines the background of the REX pipeline project and analyzes the effect on US natural gas markets of REX Phases I and II.The concluding article will ...

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