(by Paul Vivian and Rick Preckel, www.prestonpipe.com) Market Monitor – April 2025 has been a notably active period for the US oil and gas pipeline sector, marked by several major project announcements, regulatory decisions, and operational incidents that underscore both the growth and the challenges facing the industry. One of the most significant announcements came from Enbridge, which, in partnership with Targa Resources, revealed plans to move forward with the Traverse Pipeline. This new natural gas pipeline (36”) will span 160 miles across the Permian Basin, enhancing connectivity between West Texas gas production and Gulf Coast demand, including the booming LNG export market. Enbridge executives emphasized that the Traverse Pipeline will support further development in the Permian and help facilitate the region’s increasing contribution to U.S. LNG exports. Earlier in the quarter, Kinder Morgan began the FERC authorization process for two major natural gas pipeline projects. The South System Expansion 4 project will run 279 miles parallel to existing Southern Natural Gas lines through Mississippi, Georgia, and Alabama, while the Mississippi Crossing project will add a new 206-mile pipeline from Choctaw County, Alabama, to Washington County, Mississippi, including three new compressor stations. Both projects are designed to modernize infrastructure and expand capacity in the Southeast to meet growing demand and improve reliability. Import Supply – The February line pipe import total was 99,585 tons which was about 20,000 tons higher than the license tally published last month. March licenses ended the month at 91,671 tons which was about 10% below the projection from March’s Report. Through April 15th, line pipe licenses totaled just over 54,000 tons leading to a linear forecast of about 108,000 tons for the full month. Carbon ERW, over 4 ½”, not over 16”, was the import category with the highest volume for February at 20,705 tons with a CIF value of $1,004/ton. This represents a decrease of $53/ton from the prior month.
Preston Pipe Report – April 2025
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