Formerly owned by Kinder Morgan (KMI) and Pembina Pipeline (PBA), Ruby Pipeline filed for Chapter 11 in March 2022. The 1.5 Bcf/d pipeline, which connects the Opal hub in Wyoming to Pacific Northwest markets, has been on the wrong side of several market trends, including increased supply competition from Western Canada and declining gas production in the Rockies. Tallgrass purchased Ruby for $282.5MM at a bankruptcy auction in December 2022.
Activity on Ruby remains low, with the pipeline mainly serving as a last-resort option to supply the West Coast when seasonal price blowouts occur. Throughput averaged 208 MMcf/d in 2025, or 14% utilization. Meanwhile, pipelines flowing to the West Coast via Canada and the Permian Basin consistently run full, according to East Daley Analytics’ West Coast Supply & Demand report.
Despite its checkered history, East Daley believes Ruby could see a meaningful revival in the years ahead.
On the demand side, Ruby is well positioned to gain from data centers. Developers have targeted the Reno, NV market with several projects near where Ruby passes through (see map above from the ‘Data Center’ dashboard in Energy Data Studio).
Great Basin Gas Transmission, which interconnects with Ruby, is also pursuing a significant pipeline expansion in northern Nevada. After closing an open season in December 2025, Great Basin intends to add 800 MMcf/d of capacity by 4Q28 as part of a ~$1.7B expansion. Ruby is in a prime location to supply this increased gas demand.
More upside could emerge from the Stratos project in northern Utah, a massive 9 GW data center being developed by “Shark Tank” star Kevin O’Leary close to the Ruby footprint. The project in Box Elder County, UT would cover 40,000 acres and require more than double the electricity consumed by the entire state of Utah. The Stratos project has received approval from Box Elder County commissioners, though also faces fierce backlash from local residents.
Supply dynamics also point to a rebound. Williams recently expanded westbound capacity on its MountainWest Overthrust Pipeline, allowing more gas from the eastern Rockies to reach Opal in southwestern Wyoming. East Daley also projects gas production from the Green River Basin will grow over 600 MMcf/d from YE25 to YE30 as a result of higher prices. The underutilized Ruby is a prime candidate to move the incremental production.
As a result of these dynamics, East Daley anticipates steady growth in Ruby flows in the latter half of the decade (see figure at right). In our view, Ruby may no longer be the stranded asset of the past.
See the West Coast Supply & Demand report for more detail. With Green River production expected to increase through the end of the decade, westbound takeaway options largely contracted, and incremental demand emerging across the West, Ruby stands out as the most logical outlet for new Rockies gas supply. While utilization is unlikely to reach full capacity, the pipeline is positioned to transition from a seasonal relief valve to a structurally important corridor for Western US gas markets. – Alec Gravelle Tickers: KMI, PBA, WMB.
Download Part II of East Daley’s Permian Basin White Paper Series
The Permian Basin’s next big buildout is already taking shape, but this time the driver isn’t crude oil. In The Permian Basin at a Crossroads: Why This Pipeline Boom is Different, East Daley Analytics’ latest white paper reveals how gas demand from AI data centers, utilities and LNG exports is rewriting the midstream playbook in the leading US basin. Over 10 Bcf/d of new capacity and $12 billion in investments are reshaping flows, turning the Permian into a gas powerhouse even as rigs decline. Read Part II: Why This Pipeline Boom is Different
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