Ruby and the Rockies Express pipelines connect supply growth in the U.S. East to premium West Coast demand markets.
Rockies gas supply increasingly is being displaced from the Northeast demand market as capacity expansions allow growing Marcellus shale production to serve a larger share of Northeast demand.
The Ruby and Rockies Express pipelines together allow supply growth in the U.S. East to reach premium western markets. What's more, these pipelines allow Rockies shippers at Opal to swing to the best priced Western markets. With large production numbers forecast for the Marcellus, more western gas remains in the West and a tighter spread between Opal and Dominion South is beginning to emerge.
Platts' Market Alert, West Absorbs Marcellus Pushback, analyzes the impact the Ruby Pipeline and Marcellus shale's exponential production growth are having on the West, including implications for Opal flows and basis expectations.