End of REX Reversal, and Ohio River System Construction in Sight

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Flow on Rockies Express Pipeline (REX) has continued to stay below anticipated levels, with the recent dip caused by Rice Energy shifting production from its REX/Gunslinger point to the similar TETCO/Boltz Ridge meter in Monroe County, OH.

Rice holds firm capacity on both REX and TETCO. Part of the switch may be motivated by prices in the region remaining suppressed despite the increase in exports to the west and south. In its second quarter earnings report, Chesapeake said it has choked back 100 MMcf/d of Utica production since July 2015 and is curtailing 275 MMcf/d overall as a result of weak prices.

The company expects to increase production in November as regional gathering comes into service.

While Regency remains mum on the timing of its Ohio River System (ORS) gathering line, Genscape field agents report the construction of the compressor stations and pipeline tie-in to REX can be expected to be complete between mid-September and mid-October.

In mid-August, REX filed an in-service request for the last outstanding East-to-West facilities. The capacity of that project is 1.8 Bcf/d, but is not expected to fill until Regency’s ORS begins to deliver into the system.

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