Tallgrass Energy’s Rockies Express Pipeline (REX) has been through a lot in its 10-plus years of operation. Since its first eastbound-only segments started moving natural gas out of the Rockies in 2008, flows on the pipeline have evolved due to market events, primarily the onset of the Shale Revolution, which has resulted in a surge of gas supplies in the Eastern U.S. and increasing gas-on-gas competition across North America. Rising to the challenge, REX has undergone a number of transformations to adapt to the shifting gas flow patterns and price relationships, including reversing flows on the eastern zone of the pipe to move gas west from Ohio. In 2019, REX was again put to the test, this time on the western end of the pipe, where the bulk of its legacy long-term contracts for eastbound flows out of the Rockies expired, with the last of them rolling off on November 11, 2019. Some of that has since been recontracted, and the in-service of the REX Cheyenne Hub Enhancement and Cheyenne Connector projects could further shore up REX mainline flows. Today, we begin a short series providing an update on REX’s eastbound gas flows and contract changes.
Express Yourself – Tallgrass/Rockies Express’s Recontracting Efforts for Rockies Gas Flows
