(by Paul Vivian and Rick Preckel, www.prestonpipe.com) Market Monitor – Line pipe licenses so far in September (8 of 21 business days counted) are already at the level of the average of the last two full months. The increase is in both sectors – 16” and under and greater than 16”. This bears watching as it could represent a turning point in what has been the lowest level of line pipe shipments in more than 15 years. Pipeline News – According to an article in Marcellus Drilling News, there are 45 active natural gas pipeline projects in the US and 16 of them are in the Marcellus-Utica shale region. If all are built, which we believe is doubtful, it would increase takeaway capacity by 7.9 bcf. According to an S&P Global article, another 16 projects are tied to LNG export facilities. Summit Carbon Solutions is holding informational meetings in all 30 of the counties in Iowa through which their pipeline would pass. This is required because the state classified the project as a hazardous liquid pipeline. According to KCCI News, the pipeline is still in the early stages of the approval process and 14 people have already filed objections. In a previous Issue, we wrote about how FERC is poised to include assessments of the GHG emissions related to the usage of the natural gas shipped via a proposed pipeline potentially making it more difficult to approve new projects. Recently, President Biden has indicated that he would nominate Democrat Willie Phillips Jr., the chair of the Public Service Commission of the District of Columbia, to replace former FERC Commissioner Republican Neil Chatterjee. Phillips’s appointment, if confirmed by the Senate, would give the Democrats the majority potentially furthering this effort. Import Supply – The July import total was 46,032 tons which was below the license tally from last month and the second lowest month of the year to January. August import licenses shows an increase in volume to 58,379 tons. The September forecast, with 8 of 21 days summed, is way up at 137,514 tons. The top import item for the month of July 2021 was Carbon ERW 4 ½” not over 16” OD with 11,760 tons. The price was $965/ton. This is up $100/ton over last month with volume cut in half.
Preston Pipe Report – September 2021
Pipe Exchange
14025 West Road
Suite 100
Houston, TX 77041
- Phone: 713.934.9480
- Fax: 713.934.9490
- Email: sales@pipexch.com