(by Paul Vivian and Rick Preckel, www.prestonpipe.com) Market Monitor Projects: “Natural gas flaring hits global peak as US$16 billion worth is wasted in a year.” “Permian’s Flared Natural Gas Needs Infrastructure Beyond GCX, Says Goldman.” “North Dakota operators flare record 671 MMcf/d of natural gas in July.” “Natural Gas Flaring Increases Eleven Percent.” The above are just a few recent headlines on the topic of natural gas flaring. While most gas is flared because there is no takeaway capabilities, in a recent issue of this Report, we noted that approval had been granted by the Texas Railroad Commission in one instance to flare gas despite the fact that the production facilities were connected to takeaway capacity. Permission was granted because, according to the company, it would cost them more to ship the gas at current prices. There are two points here. First, up until the last few years, gas flaring was not in the public consciousness, it is now much more common to hear about it. In the current view of future pipeline projects in North America, according to Simdex, about 60% of the projects are focused on natural gas. Some are feeding LNG facilities or balancing production and demand but others, while accomplishing those goals, are also helping the industry deal with associated gas. We would predict that with many other aspects of carbon energy sources under the scrutiny of environmentalists, this topic will sooner or later come to the forefront. Gas flaring is already not permitted in Colorado and North Dakota’s regulations are becoming more restrictive. Ultimately, this will lead to additional pipeline construction, additional export facilities, and more cleaner burning power plants. Import Supply – The August import total was 145,671 tons. September import licenses were down to 105,107 tons. The October forecast, with 10 of 22 days summed, continues downward suggesting a linear forecast of 85,208 tons. We believe this will prove low as the month progresses. The big import item for the month of August 2019 is carbon, ERW over 4 1/2”, not over 16” OD with 36,440 tons. The price is $823/ton which is down $30/ton from last month. The YTD for this category, 402,121 tons.
Preston Pipe Report – The Line Pipe Market Oct 2019
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