(by Paul Vivian and Rick Preckel, www.prestonpipe.com) Market Monitor – Last month we wrote about the reminder that PHMSA sent out regarding pipeline owner and operator obligations under the PIPES Act of 2020. The benefit to pipe people is the sales of material for pipeline repairs. It is important to note that these regulations cover all pipelines (gathering, distribution, and transmission) – even those not federally regulated. Gathering lines are a good example. There are about 17,000 miles of gathering lines regulated by PHMSA but there are about 435,000 miles in total in the US. Regarding the greenhouse gas issue, researchers have estimated that distribution pipelines alone have about 630,000 leaks emitting 690k tons of methane annually. While we’re not necessarily a fan of more regulation, it will be important to the fossil fuel industry – and its suppliers – to do everything it can to be part of a future energy mix. More importantly, it will help with an orderly energy transition policy that should help to prevent energy disruption and price spikes. And should help improve line pipe demand in the interim. Pipeline News – Spire STL Pipeline is a 2-year old operating pipeline that has recently had its approval revoked by the US Court of Appeals which some say throws the future of U.S. pipeline development into doubt. The charge is that FERC shirked its duty in approving the pipeline in the first place which is what could affect how future pipelines are approved. Alaska LNG pipeline, an 800 mile project to serve the Alaska LNG project, was approved last year but the Biden administration wants another environmental review. The US DOE will consider the impacts of natural gas production on Alaska’s North Slope along with the project’s full greenhouse gas emission potential – including consumption of the gas. Tellurian Line 200 & 300, Driftwood Pipeline has submitted its application to FERC for a dual 42”, 37 mile low, emissions natural gas pipeline to be build in Louisiana. Driftwood would employ electric driven compression thereby reducing the emissions of the pipeline. Import Supply – The May import total was 56,790 tons which was just below the license tally from last month. June import licenses shows a small increase in volume reporting 64,411 tons. The July forecast, with 7 of 21 days summed, is way down at 30,088 tons. The top import item for the month of May 2021 was Carbon ERW 4 ½” not over 16” OD with 20,486 tons. The price was $823/ton. This is $183/ton lower than last month.
Preston Pipe Report – July 2021
Pipe Exchange
14025 West Road
Suite 100
Houston, TX 77041
- Phone: 713.934.9480
- Fax: 713.934.9490
- Email: sales@pipexch.com