Tallgrass Energy and Rockies Express Pipeline Announce Completion of RE's Zone 3 Capacity Enhancement Project

Tallgrass Energy and Rockies Express Pipeline LLC (“REX”) announced today that the 0.8 billion cubic feet per day REX Zone 3 Capacity Enhancement Project is substantially complete and accepting nominations. REX’s Zone 3 continues to be capable of bidirectional natural gas transportation and can now move 2.6 billion cubic feet per day of natural gas from Clarington, Ohio, to delivery points as far as Mexico, Missouri.

Zone 3 provides significant takeaway capacity for Appalachian natural gas along with flexible transportation routes through its 20 pipeline interconnects and delivery points. Zone 3 capacity from east-to-west is contracted at 2.6 billion cubic feet per day with a weighted average remaining contract life of 16 years as of December 31, 2016.

“The completion of the Capacity Enhancement Project marks another important milestone in the transformation of REX into the nation’s northernmost bi-directional natural gas header system,” said Matt Sheehy, Tallgrass’s Senior Vice President & Chief Commercial Officer, and REX’s President. “Our original Capacity Enhancement shippers saw the long-term value in the project over two years ago when they contracted with us. Since then, as others embraced the REX value proposition, we have steadily added incremental long-term customers to this project, fully subscribing the 0.8 billion cubic feet per day.”

Crystal Heter, REX’s Vice President & General Manager added, “We are pleased we delivered this significant capital project on time and at a cost that is expected to be less than our project budget.”