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Regional supply competition pressures US natural gas prices

09/07/2009
By Rusty Braziel and Rocco Canonica
Gas-on-gas supply competition is accelerating in the US gulf region and competition with Rocky Mountain natural gas supplies on the Rockies Express pipeline will only accelerate this process, leading to lower overall gas prices for quite some time.The 1.8-bcfd Rockies Express East natural gas pipeline (REX-East) began service into Lebanon, Ohio, June 28, 2009, opening the first direct route between the Rockies producing region and historically higher priced natural gas markets in Ohio and the Northeast.REX shippers took advantage of the new capacity almost immediately, moving gas away from the markets they had been serving in the Midwest to higher priced markets farther east. Regional pri...
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