Why are Rockies Express Pipelines a necessity

The Rockies Express pipelines represent one of the most challenging long-term projects that have been put into practice in North America. Summing up 1,678 miles, the project involves the necessary infrastructure for producers in the Rocky Mountains to evaluate their assets at their true value. To state it clear, this means the great possibility to deliver natural gas to businesses in key regions of the country: East and Midwest. The project is also referred to as Kinder Morgan pipelines owing to the main associate in the project who provides most of the finances..

The pipelines start their way at Meeker Hub in Rio Blanco County, Colorado and they go as far as the Clarington Hub in eastern Ohio. A great characteristic is that the Rockies Express pipelines try to go in parallel with already existing service passages as much as possible. The immediate consequence is the significant abridgement in costs that are normally necessary to acquire additional right-of-way. But they are also important insofar as avoiding disruptions is concerned.

The Kinder Morgan pipelines have already accomplished part of the project, meaning 136 miles, which have been approved in February 2006, completed recently and it is already being used. This specific sector starts from the Meeker Hub in Rio Blanco County, Colorado and finishes in the Wamsutter Hub in Sweetwater County Wyo. Another portion of the Rockies Express pipelines has been approved and it is estimated to be finishes in January 2008. The rest of the project is expected to end in 2009.

At the beginning, most people asked themselves why t was necessary to build the Rockies Express pipelines. A first answer is to serve the needs of the nation. In a nutshell, consumers from Midwest and East are provided with natural gas coming from the Gulf Coast, Mid-Continent, Canada and imports of liquefied natural gas (LNG). But these supplies are diminishing significantly and steadily because of several factors. One example would be hurricanes which have permanently been affecting America lately. This situation rose the necessity of an extra source of natural gas for the country.

The second reason for Kinder Morgan pipelines to be built is constituted by Wyoming that is claimed to be the first region as far as the growth of natural gas supplies is concerned. It currently occupies the third place among the natural gas producers whose supplies are mostly exported. Actually, only 5% of the total amount of production is provided to American consumers. Moreover, constant production of natural gas is developing in Utah and Colorado. For all this quantity of natural gas up-to-date pipelines are a must.

Another reason for which the infrastructure should be enlarged is represented by the estimated figures of natural gas demand. Experts claim it to rise up to 50% by 2020. Therefore, it is absolutely necessary for the American consumers to have a stable and secure supply or natural gas. And this can be attained by means of the Rockies Express pipelines. As a matter of fact, it is projected to transport 1.8 billion cubic feet of natural gas per day from Wyoming and Rocky Mountain surroundings to consumers in the Midwest and East.

Last, but not least, supplementary infrastructure of the Kinder Morgan pipelines system it will enable other projects to be developed later on. A significantly larger gas market will lead to steady gas prices and revenue stream in the States. Consequently, a steady market of the industry will soon establish without the present fluctuations.