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FERC approves Rockies Express pipeline |
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Written by KATHERINE LING, E&ENews PM
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Monday, 02 June 2008 |
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The Federal Energy Regulatory Commission approved a 640-mile natural gas pipeline today that will link the eastern United States with the Rocky Mountain West.
The Rockies Express Pipeline LLC's project will bring more than 1.8 billion cubic feet per day across the country. The "REX-East" pipeline will link to the REX-West pipeline in Missouri, which will send gas to a three-pipeline connection in Ohio that feeds the Northeast and mid-Atlantic regions.
The REX-West pipeline, which came online this month, connects Wyoming to Missouri and has a capacity of 1.5 billion cubic feet per day.
FERC's authorization of REX-East is conditional upon the implementation of 147 mitigation actions to reduce the project's impact on the environment, the agency said. FERC also ordered the pipeline to be built in 18 months.
The Rockies account for more than 22 percent of total U.S. proven natural gas reserves, yet the region suffers from severe capacity constraints, FERC said.
The capacity bottleneck caused gas prices to plummet last September as supply exceeded demand in the Rocky Mountain region. The price bottomed at 1 cent per million British thermal units, even as prices at the Henry Hub in Louisiana were around $6 per million Btu and several dollars higher in the Northeast.
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Last Updated ( Monday, 02 June 2008 )
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