Random Update Of REX -- The Massive Header Natural Gas System With Access To Almost Every Other US Market -- January 26, 2017

Data points from RBN Energy on the recently completed REX Zone 3 and the future of northeast natural gas markets:

• Tallgrass Energy: Rockies Express Pipeline (REX)
• brought on-line January 6, 2017: the last 350 MMcf/d of its 800-MMcf/d Zone 3 Capacity Enhancement Project
• boosted east-to-west takeaway capacity out of Ohio to 2.6 Bcf/d (~ 400,00 boe/d), up 45% from 1.8 Bcf/d previously
• fully-subscribed
• designed to serve Marcellus / Utica
• filled up almost instantaneously
• But note this:
• Northeast production did not increase! The natural gas came from other pipeliness.
• all Marcellus / Utica pipelines have at least partially reversed flows, but REX Zone 3 has been most significant
• huge volume
• 15-plus interconnects with major long-haul pipelines

REX: a massive header system with access to just about every other US market
Implication: Northeast pipelines are going to be competing for supply; REX appears to have the advantage.