Will Rockies Gas Force Price Competition Back To Henry Hub?

摘要

According to a new report from BENTEK Energy, the Northeast 31 natural gas market will be able to absorb only a fraction of the 1.8 Bcf/d of gas that can be delivered to Clarington, OH by the Rockies Express (REX) pipeline. Due to downstream constraints beyond Clarington, new supplies from the Rockies will compete directly with gas moving into high-value Northeast markets from traditional supply regions, predominantly the U.S. Gulf.rnVariable transportation cost disadvantages are likely to force Gulf suppliers to either accept lower prices to remain competitive or be forced into lower-value markets. The REX project is scheduled for completion in November.rnPart 2 of BENTEK's "Catch the Wave™" Market Alert series addresses major Northeast gas market developments anticipated when REXrnreaches Clarington, including (a) the market impact of capacity constraints on pipelines downstream of the Clarington Hub, (b) pricing implications for Southeast/Gulf supplies displaced by Rockies gas, © regional market conditions that are expected to determine the winners and losers in the race to build new pipeline capacity across the region; and (d) the most attractive storage facilities being developed or expanded in the Northeast region. (The title "Catch the Wave™" refers to BENTEK's proprietary model of the Northeast natural gas pipeline infrastructure that identifies regional pipeline constraints or "waves" within the region.)