For much of the time since it began operations, the capacity on Tallgrass Energy’s Rockies Express Pipeline has been contracted and utilized at high rates for long-haul flows east from the Rockies to the Midwest. Specifically, the pipeline consistently has had between 1.3 and 1.8 Bcf/d out of a total 1.8 Bcf/d contracted, mostly for 10-year terms. That all changed in the past year, however, as the original long-term shipper contracts that took effect in 2009 came due and the pipeline experienced a major decontracting, with the bulk of the contracts rolling off in November 2019. Since then, a number of open seasons led to a partial recontracting. Tallgrass also is developing two projects — Cheyenne Connector and REX Cheyenne Hub Enhancement — that could increase flows to REX later this year. Today, we continue a series providing an update on eastbound pipeline contracts and gas flows on REX.
As we recounted in Part 1, REX’s long-term success in its 10-plus years of operation has depended on its ability to morph in response to the rapid-fire changes that have buffeted the gas market over the past decade. These changes primarily have been driven by the Shale Revolution, which has resulted in a surge of gas supplies in the Eastern U.S. and increasing gas-on-gas competition across North America.
Canadian crude output is rising, requiring new export routes. As traditional pathways face constraints, the U.S. Rockies—especially the Guernsey, WY hub—are emerging as key corridors for moving Canadian heavy crude to downstream markets, including the Gulf Coast.
REX, which was originally conceived as an eastbound-only pipeline stretching from the Rockies to the Northeast, has undergone a number of transformations to adapt to the shifting gas flow patterns and price relationships, including reversing flows on the eastern zone of the pipe to move gas west from the Marcellus/Utica shales. The large-diameter, long-haul pipeline has evolved into a robust bidirectional cross-country system that behaves like a massive header system for interregional flows via its numerous interconnects. As such, it has remained an integral outlet for both Rockies and Appalachian producers and has enjoyed high utilization rates on both ends of the pipe — that is, until last fall. In 2019, the bulk of its legacy long-term contracts for eastbound flows out of the Rockies expired, with the last of them rolling off on November 11, 2019.
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About the song
"Express Yourself" was written by Madonna and Stephen Bray, and is the second song and second single from Madonna's fourth studio album, Like a Prayer. The song is about female empowerment and, according to Madonna and Bray, was a tribute to the funky soul music of Sly and the Family Stone. The song was released in May 1989, and went to #1 on the Billboard Dance Club Songs and #2 on the Hot 100 charts. It was certified Gold by the Recording Industry Association of America (RIAA). Personnel on the record were: Madonna (vocals) and Fred McFarlane (programming, sampling).
Like a Prayer was recorded at Ocean Way Recording in Los Angeles; Johnny Yuma Studios in Burbank, CA; and D&D Recording in New York City between September 1988 and January 1989. Producers included Madonna, Stephen Bray, Patrick Leonard and Prince. The LP was released in March 1989, and went to #1 on the Billboard Top 200 Albums chart. Six singles were released from the album. It has been certified 4x Platinum by the RIAA.
Madonna (Madonna Louise Ciccone) is an American singer, songwriter, record producer and actress. Referred to as the "Queen of Pop," she is the best-selling female artist of all time, having sold more than 300 million records worldwide. She has released 14 studio albums, five live albums, six compilation albums, three soundtrack albums and 86 singles. Madonna has had starring roles in 26 feature films and 10 short films. She has won three American Music Awards, 14 ASCAP Awards, 19 Billboard Awards, two Brit Awards, two Golden Globe Awards, eight Grammy Awards, two Ivor Novello Awards, 20 MTV Video Music Awards and two World Music Awards. She is a member of the Rock and Roll Hall of Fame and the UK Music Hall of Fame. She continues to record and is currently on her Madame X tour in Europe.
