Rockies Price and Fundamentals

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Commentary Outlook & Notes Market-Relevant Events Infrastructure Supply Chart Pack

Updated August 15, 2025

Production has fallen back to 2024 levels after reaching year-to-date highs on July24. Demand continues to outperform 2024 and track along 2023 levels. Since bottoming in April, regional basis prices have rallied back to February levels. A cold winter helped keep basis price positive across the basin in the face of high storage. A major decline in price from mid-January to early April coincided with declining heating demand and a sudden rise in Henry Hub pricing. We expect pricing to remain volatile throughout summer as storage and production remain elevated.

August 15: Basis pricing at CIG has remained steady over the past month with little movement throughout the forward curve. Between July 15 and August 15, the Winter 25/26 strip has fallen $0.0225 from -$0.0325 to -$0.055 but traded as high as $0.0375 and as low as -$0.08. It's a similar story for the Summer 26 strip with pricing down $0.0253 from -$0.7547 on July 15 to -$0.78 on August 15. However, West Coast price declines have brought NWP Rockies basis pricing down over the past 30 days. Currently Winter 25/26 basis is down $0.135 over the past month to $0.4298 with much of that drop coinciding wtih selling pressure in the middle of last week. Summer 26 has also fallen but to a lesser degree, only losing $0.065 over the past month to trade -$0.55.

August 1: Basis prices across the Rockies have been stable for the past two weeks. The now prompt September CIG basis contract is down 6.5c from -$0.695 on 7/21 to -$0.76 intrady on 8/1. Over the same two weeks, the Nov25-Mar26 strip has gained 2.5c moving from -$0.03 to -$0.005. It's a similar story throughout the forward curve with most months between Nov25-Jan28 gaining slightly over the past 10 trading days. NWP Rockies' basis has also traded sideways in the past two weeks. The front of the curve, through Dec25, is a touch lower while the remainder of the forward curve is flat.

July 18: Basis forward curves have traded sideways for the first half of the month. The August CIG basis price opened trading on July 1 at -$0.6175 and currently at -$0.580 intraday on July 18. It's a similar pattern down the basis curve as Winter 25/26 and Summer 26 are down $0.045 and $0.02 respectively since the start of July. NWP Rockies basis has been a bit more volatile with the August contract trading as high as -$0.2225 intraday on July 9 but falling to -$0.40 as of July 18. A rebound in Henry Hub pricing and regional production near seasonal highs could put some short term pressure on basis pricing. 

July 7: Persistent heat across the West Coast and Rockies has led to a rapid strengthening of prompt month basis pricing. Forecasts remain warm for the remainder of the month with July expected to be warmer than normal. In the past two weeks, the prompt month August CIG basis price has rallied from -$0.83 on 6/23 to -$0.5175 intraday 7/7. With price trading inside -$0.55, this is the best price for the August contract since January. The move also continues throughout what remains of the summer strip with the October basis contract rising from -$1.045 on 6/23 to trade -$0.74 as of the close on 7/3. NWP Rockies basis has also strengthened, with the August contract rallying from -$0.56 on 6/23 to -$0.36 intraday 7/7.

Price action will continue to be heavily weather driven and influenced by adjacent regions as the Rockies looks to push gas out during the summer and meet regional demand during winter. No significant changes to pipeline egress capacity are expected over the next few years. However, there will be small increases in pipeline capacity from a few pipeline expansions throughout late 2025 and early 2026.

Major Pipeline Corridors Out of The Rockies

Gas Pipeline Flows

Gas Pipeline Projects

REX/Cheyenne Connector Enhancement  In-service date: 2Q28 Capacity: 0.25 Bcf/d

REX/Cheyenne Connector Enhancement - Rockies Express, Cheyenne Connector and East Cheyenne Gas Storage jointly filed an application to FERC requesting authorization for Rex to lease 250,000 Dt/d capacity on Cheyenne Connector and build a new 153 mile 24" pipeline to Colorado Springs. The application submitted on August 15 is the latest in a series of announcements by Tallgrass to enhance its ability to meet local demand in the Rockies.