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Capacity enhancement project completed by Tallgrass and Rockies Express

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World Pipelines,

Tallgrass Energy and Rockies Express Pipeline LLC (REX) announced that the 0.8 billion ft3/d REX Zone 3 capacity enhancement project is substantially complete and accepting nominations. REX’s Zone 3 continues to be capable of bi-directional natural gas transportation and can now move 2.6 billion ft3/d of natural gas from Clarington, Ohio, to delivery points as far as Mexico, Missouri.

Zone 3 provides significant takeaway capacity for Appalachian natural gas along with flexible transportation routes through its 20 pipeline interconnects and delivery points. Zone 3 capacity from east to west is contracted at 2.6 billion ft3/d with a weighted average remaining contract life of 16 years as of 31 December 2016.

“The completion of the capacity enhancement project marks another important milestone in the transformation of REX into the nation’s northernmost bi-directional natural gas header system,” said Matt Sheehy, Tallgrass’s Senior Vice President & Chief Commercial Officer, and REX’s President.

“Our original capacity enhancement shippers saw the long term value in the project over two years ago when they contracted with us. Since then, as others embraced the REX value proposition, we have steadily added incremental long term customers to this project, fully subscribing the 0.8 billion ft3/d.”

Crystal Heter, REX’s Vice President & General Manager, added: “We are pleased we delivered this significant capital project on time and at a cost that is expected to be less than our project budget.”

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