Pipelines ease price disparity for Rockies’ gas
November 29, 2009
GRAND JUNCTION, Colo. – The lack of pipeline capacity to ship natural gas out of Colorado and the resulting lower prices for the state’s producers are being addressed with the completion of new lines.
The Rockies Express $6.7 billion pipeline from the western Colorado to western Ohio began service this summer. A $60 million 26.-4-mile pipeline that will allow Williams Cos. Inc. to connect to lines going to the West Coast began operation earlier this month.
Another factor in the easing of the disparity in the price between gas produced in Colorado and other regions was a slowdown in production that helped reduce demand for pipelines.
Companies are waiting to see the degree to which low national natural gas prices and growing competition from new gas fields in other parts of the country will affect the industry’s recovery in the Rockies.