Rockies Express Pipeline East

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Rockies Express PipelineEast
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REX- East

• Rex-East is the third leg of a 1,323 mile
  pipeline that spans from Wyoming and Colorado to
  eastern Ohio.
  
• Rex-East is being built jointly by Sempra,
  Kinder-Morgan and Conoco-Phillips.
  
• Construction is scheduled to begin in early
  spring of 2008 and completed into extreme Eastern
  Ohio by December 30, 2008.
  
• Applied for FERC approval on 4-30-07
• Completion of all facilities pertaining to all
  three legs of the REX project is projected for
  June 2009.

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• The Rex-East project consists of 622 miles of
  42-inch diameter pipe that spans from Audrain
  County, Missouri to Monroe County, Ohio.
  
• The pipe will vary in wall thickness from
  approximately 0.486 inches to .888 inches.
  
• There will be five compressor facilities and
  approximately 20 interconnections with other gas
  pipelines.
  
• The five compressor facilities will be located in

• Audrain County, Missouri (near Mexico)
• Christian County, Illinois (near Blue Mound)
• Putnam County, Indiana (near Bainbridge)
• Warren County, Ohio (near Lebanon)
• Muskingum County, Ohio (near Chandlersville)

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• The Rex-East route will traverse parts of the
  following counties
  

• Missouri Audrain, Ralls, and Pike
• Illinois Pike, Scott, Morgan, Sangamon,
  Christian, Macon, Moultrie, Douglas, and Edgar
  
• Indiana Vermilion, Parke, Putnam, Hendricks,
  Morgan, Johnson, Shelby, Decatur, and Franklin
  
• Ohio Butler, Warren, Clinton, Greene, Fayette,
  Pickaway, Fairfield, Perry, Morgan, Muskingum,
  Guernsey, Noble, Belmont, and Monroe
  

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• The Rex-East pipeline will access markets in
• Illinois, Indiana, and Ohio
• Where available the east route will parallel
  existing pipeline and utility corridors, using
  FERC guidelines.

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• It is believed that the pipeline can handle
  enough natural gas to supply more than 7 million
  homes each year.
  
• It is estimated that the U.S. demand for natural
  gas will increase by up to 50 by 2020.
  
• Due to this estimate it is predicted that
  additional pipeline capacity will be needed to
  deliver natural gas to end- users/consumers.
  
• i.e. The justification for building the Rex
  pipeline
  

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Fuel Percentages Estimated at 90 Load Factor
usage Receipt Zone Delivery Zone 1 Zone 2 Zone
3 Z
one 1 0.81 - -
Zone 2
1.84 1.16 -
Zone 3 2.90 2.22 -
Fuel Percentages Estimated at 90 Load Factor
usage Receipt Zone Delivery Zone 1 Zone 2 Zone
3 Zone
1 0.81 - -
Zone 2
2.31 1.50 -
Zone 3 3.79 2.98 1.48

• In addition to the estimated fuel percentages the
  current lost and unaccounted for percentage
  is 0.25 will be applicable to all transportation
  transactions.

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• When complete the pipeline will carry between 1.5
  Bcf and 2.0 Bcf cubic feet of gas per day.
  
• The planned capacity of the system to be
  delivered to eastern Ohio is 1.8 Bcf per day.
  
• As of today Rocky Mountain production carries a
  4.00 negative differential to Appalachian
  production value.
  

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• Effects on Appalachian basis and production is
  not yet known.
  
• Once the pipeline starts flowing it will have a
  dramatic effect for a period of time.
  
• The Alliance pipeline in Chicago basis dropped
  about .30 when the pipe was fully operational.
  
  
• Over the course of the last 2 years basis has
  gradually come back, since markets have figured
  out how to move the new gas.
  
• Rex-East could cause similar problems.
• Conclusions and future expansions.

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