The owners and operator of the Rockies Express Pipeline LLC (REX) have executed a binding precedent agreement with a large Utica Shale producer to transport up to 200,000 Dth/d of processed production to Midcontinent markets.
The processed gas will enter into REX through a new 14-mile residue header being installed by REX at the tailgate of MarkWest’s Seneca Processing Complex in Noble County, OH. The facilities, which are expected to be in service in late 2013, will add significant gas supply to the east end of REX for transport to points west or east.
“Tallgrass, as the 50% owner and operator of REX, believes that we and our shipper have a common understanding of the future for transporting gas out of the Appalachian Basin,” said REX Chairman William R. “Bill” Moler. “REX is a high capacity long-haul transmission pipeline that spans from Colorado/Wyoming to Ohio and can act as the nation’s northern-most east-to-west and west-to-east corridor for natural gas distribution. We believe that making REX bi-directional is the next wave of takeaway capacity from the Utica Shale play.”
Rockies Express Pipeline LLC is a joint venture of: a subsidiary of Tallgrass Development, LP. (50%); Sempra U.S. Gas & Power (25%), a subsidiary of Sempra Energy; and a subsidiary of Phillips 66 (25%). A wholly owned subsidiary of Tallgrass Development, LP operates the pipeline.