Rockies Price and Fundamentals

For more discussion on basis price moves and the current forward curves:

JUMP TO OUR OUTLOOK AND CHART PACK 

For more discussion and charts, jump to our outlook and chart pack. Remember, the local market is influenced by the broader gas market. Consult our Gas Macro Outlook for more.  

Recent Market-Relevant Events 

Infrastructure Outlook 

A lack of production growth since 2020 has meant pipeline egress capacity has not been challenged by production. However, there are limitations and constraints within the basin to move gas from east to west from CIG/Cheyenne to NWP Rockies/OPAL. Expectations are the basin will continue to have available egress out of each major corridor. A few in basin pipeline projects will also help move natural gas intrabasin.

For a discussion of production outlook:

JUMP TO LOCAL SUPPLY 

Below are the most market-relevant infrastructure projects that appear to be funded and going forward. The projects that offer intra-region capacity (egress) are also shown in the chart above.

Note: Deeper discussion included below the map.

MountainWest Overthrust Westbound Expansion

In-service date: 4Q25

Capacity: 0.3 Bcf/d

Source: Williams

MountainWest Overthrust Expansion - Williams has started construction on its 0.33 Bcf/d westbound expansion from Wamsutter to Opal. The project is expected to be in service in 4Q25, delivering additional supply to the premium NWP Rockies market.

Bison Xpress - TC Energy is working to increase capacity on the Northern Border Pipeline (NBPL) system by replacing three existing compression stations. The increased capacity of 300 MMcf/d will be leased by Wyoming Interstate Company as part of its Bakken Xpress Project. In addition, the project would allow bidirectional natural gas flow on TC's Bison pipeline.

Bakken Xpress - Kinder Morgan's connection to the Bison Xpress project, which will provide egress south from Bison pipeline to Cheyenne via the Fort Union Gas Gathering system and Wyoming Interstate Pipeline. 

Tallgrass Permian-to-REX Pipeline - Tallgrass Energy plans to build a 2.4 Bcf/d greenfield pipeline linking the Permian Basin to the Rockies Express Pipeline (REX), targeting a late 2028 in-service date. The project has secured anchor shipper agreements, enabling it to move forward pending regulatory and corporate approval. The pipeline will enhance access to Midwest and Plains markets via REX and Tallgrass Interstate Gas Transmission (TIGT), with optional flows westward through Ruby and Overthrust. 

Production

Operator Guidance

Rig Count

Local Demand

Demand in the Rockies varies wildly between Winter and Summer. Winter demand averages roughly 3.5 Bcf/d compared to 1.5 Bcf/d across the Summer. However, the overall demand has been steady the past five years with no expectations for a shift in those dynamics. The basin will continue to rely on moving gas out of the region, supplying the West Coast, Midwest and Midcontinent.