Tallgrass Energy and DCP Midstream’s Cheyenne Connector pipeline and the REX Cheyenne Hub Enhancement projects are set to begin operations tomorrow, June 26, after receiving FERC approval yesterday. The natural gas projects will add takeaway capacity out of the Denver-Julesburg and Powder River production basins. For Tallgrass, the incremental capacity has the potential to increase utilization of its Rockies Express Pipeline (REX), which has struggled to fully recontract its mainline capacity after a slew of long-term contracts expired last year. For gas producers, the new capacity and hub upgrades mean an alternative route out of the core DJ with farther-reaching destination options for gas flows, including access to REX and its growing direct-connect load and numerous third-party interconnects in the Midcontinent/Midwest. About 600 MMcf/d in firm contracts will kick in for each project with the start of service, but given that Niobrara gas production is down and there’s likely no new production waiting behind the capacity, gas flows on the two projects may come down to economics. In today’s blog, we provide an update on the projects in the context of today’s uncertain market.
The RBN NATGAS Haynesville is a weekly natural gas fundamentals analysis focused on supply, flow, and LNG-driven demand dynamics within the Haynesville basin.
We’ve written previously about Tallgrass’s efforts to revamp utilization of the westernmost leg of its cross-country REX pipeline and, more specifically, REX’s interconnect capacity at Cheyenne Hub, which is one of the easternmost hubs in the Rockies and the gateway for Rockies gas moving east to the Midcontinent/Midwest (see Rox and Roll and the Express Yourself blog series). Despite Cheyenne Hub’s numerous pipeline interconnects, including REX, and its proximity to Weld County, CO, the epicenter of drilling activity and production growth in the DJ Basin (shown in Figure 1), Cheyenne Hub has had a limited market reach, primarily serving intraregional demand or markets in immediately adjacent states. That’s in large part because the interconnecting pipelines at the hub all operate at a lower pressure than REX, restricting REX’s capability at the hub to just 28 MMcf/d of firm receipt capacity. In addition to that issue, historically, there has been only one pipeline — the Colorado Interstate Gas (CIG) — that serves that prolific Weld County area.
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About the song
"I'll Take You There" was written by Alvertis Isbell (Al Bell) and recorded by The Staple Singers at Muscle Shoals Sound Studios in Sheffield, AL, in late 1971. Bell wrote the song after attending the funeral of his little brother. The two-chord song is based on a Jamaican reggae instrumental called "The Liquidator," by the Harry J. Allstars. "I'll Take You There" appears as the fourth song on The Staple Singers' 12th studio album, Be Attitude: Respect Yourself. It was released as a single in February 1972, and went to #1 on the Billboard Hot 100 Singles chart. Charted cover versions of the song have been done by BeBe & CeCe Winans and General Public. Salt-N-Papa sampled the song in their 1991 hit, "Let's Talk About Sex." Personnel on the record were: Mavis Staples (lead and backing vocals), Roger Hawkins (drums), David Hood (bass), Eddie Hinton (lead guitar), Jimmy Johnson, Raymond Bank (guitars), Barry Beckett (Wurlitzer electric piano), and Terry Manning (harmonica). Al Bell produced the song, which was mixed at Ardent Studios in Memphis, TN, with Terry Manning engineering. The horns and strings were arranged by Johnny Allen and recorded at Artie Fields Recording Studios in Detroit, MI.
Be Attitude: Respect Yourself was recorded at Muscle Shoals Sound Studios in Sheffield, AL, with Al Bell producing. In addition to "I'll Take You There,” the album produced a second hit with "Respect Yourself." Released in February 1972, the album went to #19 on the Billboard Top 200 Albums chart, and #3 on the Top Soul Albums chart.
The Staple Singers were an American gospel, soul, and rhythm and blues group formed in Chicago by Pops Staples and his children, Cleotha, Pervis, Yvonne, and Mavis. They released 24 studio albums and 27 singles. They are members of the Rock and Roll Hall of Fame and the Gospel Music Hall of Fame. Both Pops Staples and Mavis Staples went on to have successful solo careers. Pops Staples died in 2000, Cleotha in 2013, and Yvonne in 2018. Mavis Staples continues to record and tour, and has five concert dates scheduled in the U.S. starting at the end of September of this year.
