Colorado is one of the top five natural gas-producing states in the US, with two of its largest regions located in the Denver-Julesburg Basin and the Piceance Basin. Around 40% of the natural gas produced in Colorado is used for its own needs, while the rest is transported to markets in the West and Midwest. The owners of the pipeline are looking to reverse the flow and move natural gas from the Marcellus and Utica formations to nearby markets in the middle continent. This is due to cities like Denver seeking to electrify existing buildings with an ordinance that will gradually eliminate the use of gas in commercial and multi-family buildings by 2040.
This policy is expected to reduce greenhouse gas emissions by 80%. Colorado also has a significant amount of coal layer methane, which accounts for more than 30% of its natural gas production and nearly 30% of all carbon layer methane produced in the US. Natural gas turbines have traditionally been used to close the gap when demand increases, but solar energy has gained more traction in recent years. In addition, Colorado has significant conventional fossil fuel resources in the Sand Walsh, Piceance, Paradox and San Juan basins in the west, and in the Denver and Raton basins in the east.
These resources feed two Colorado refineries in Commerce City, north of Denver, with a capacity of 103,000 barrels per day. The Rockies Express Pipeline is a 1679-mile-long high-speed natural gas pipeline system from the Rocky Mountains of Colorado to eastern Ohio with a capacity of 1.8 billion cubic feet per day. The state of Colorado is a major player in the US natural gas market. It produces a significant amount of coal layer methane, which accounts for more than 30% of its total production. Additionally, it has conventional fossil fuel resources located in several basins across the state.
These resources are used to feed two refineries located near Denver with a capacity of 103,000 barrels per day. The Rockies Express Pipeline is also an important part of Colorado's natural gas infrastructure, as it transports natural gas from the Rocky Mountains to eastern Ohio. Denver's recent ordinance to electrify existing buildings by 2040 will reduce greenhouse gas emissions by 80%. This shift away from natural gas has led pipeline owners to look for ways to move natural gas from other sources such as Marcellus and Utica formations to nearby markets. Solar energy has also become increasingly popular as an alternative energy source.