Denver Post
Steady as she goes for natural gas

Friday, January 30, 2009

The pending completion of a $6 billion natural-gas pipeline from the Rockies to Ohio won't lead to a surge in prices for Colorado residents.

Instead, this year's opening of the east portion of the Rockies Express pipeline probably will force producers currently serving the Ohio area to lower prices to compete with Rockies supplies, according to a new study by Evergreen-based Bentek Energy.

Rockies natural-gas prices have long been lower than in other parts of the country because of the surplus created by a shortage of pipeline capacity.

"Unfortunately for Rockies producers, they have been so successful as a group at increasing production in the region that the pipeline is already full," said Rusty Braziel, Bentek's managing director. "Although the lower prices will be effectively exported to the Ohio Valley, that doesn't mean higher prices for Rockies producers."

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