This paper authored by EPIcenter affiliate Matt Oliver dicusses how pipeline congestion in the U.S. Rocky Mountain region creates sizable price wedges, or “basis differentials,” between closely linked hubs—Opal, WY, and Cheyenne, CO. As demand for transport approaches capacity on the 325-mile corridor (via CIG, WIC, and REX), secondary market scarcity rents drive the Cheyenne […]
Pipeline congestion and natural gas spot price basis differentials
