(by Paul Vivian and Rick Preckel, www.prestonpipe.com) Market Monitor – In mid-June, the Senate voted to confirm three new commissioners to the Federal Energy Regulatory Commission (FERC): Judy Chang (D), David Rosner (D), and Lindsay See (R). Once these three are sworn in, they will join incumbent commissioners Chairman Willie Phillips (D) and Mark Christie (R) to form a full commission. Allison Clements (D) is also a current commissioner but her term expires June 30th. One of the areas of controversy related to the FERC’s consideration of natural gas infrastructure projects is the evaluation of whether or not those projects are in the public interest. Commissioner Clements has consistently dissented on orders permitting the construction of natural gas infrastructure based on the Commission’s policy of not assessing the significance of a gas infrastructure project’s environmental impact related to greenhouse gas emissions. It is unclear how the new commissioners, two Democrats and one Republican, will influence that process. On that topic, in a recent court case involving the proposed expansion of natural gas supply to New York, the DC circuit court ruled that the FERC adequately considered the emissions impacts and the economic need when it approved the expansion project in Pennsylvania and New York. The court rejected arguments that the commission had impermissibly refused to quantify the environmental impact of the expansion. One June 11, the FERC granted approval to start operations on the Mountain Valley Pipeline representing the final step in a project that suffered many delays and legal challenges. Import Supply – The April line pipe import total was 74,579 tons which was well below the 97,100 tons of licenses published last month. May licenses ended the month at 114,979 with about 38,000 tons in the large OD segment. Through June 16th, line pipe licenses totaled just over 72,000 tons leading to a linear forecast well above recent monthly averages. We don’t expect licensing to continue at this pace for the full month. Alloy, SAW, over 16” OD was the import category with the highest volume for April at 19,219 tons with a CIF value of $1,435/ton. April’s volume represented about half of the year to date tons for this category.
Preston Pipe Report – June 2024
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