(by Paul Vivian and Rick Preckel, www.prestonpipe.com) Market Monitor – According to the US EIA, for the first time since U.S. LNG exports from the Lower 48 states began in 2016, annual LNG exports are expected to outpace pipeline exports—by an estimated 0.6 Bcf/d—in 2021. Interestingly, with most of the LNG export capacity on the Gulf Coast, this is driving gas drilling in the nearby Haynesville shale due both to its proximity and the fact that Louisiana is a bit more pipeline friendly than other states. Haynesville drilling is the only region that has a rig count that has recovered to its prepandemic level. In early June, FERC granted authorization for two new natural gas pipelines; Enable Midstream’s Gulf Run and WBI Energy Transmission’s North Bakken Expansion Project. In each of these cases, the FERC prepared Environmental Assessment Reports which analyzed the green house gas emissions but each noted that the assessment was for informational purposes only. The Reports did find, however, that the projects would not constitute a major action affecting the quality of the human environment. The orders were approved along party lines. This is significant because Commissioner Chatterjee’s (R) term has expired although he has not departed. He could stay until the end of the Congressional session in December. The point being is that eventually the President will appoint a Democrat to Chatterjee’s seat shifting the balance of power at the FERC to the Democrats. Pipeline News – The US EIA is tracking active, preconstruction liquids and gas pipelines totaling about 6,167 miles. While the diameters vary from 42” down to less than 16”, these projects amount to somewhere around 2 million tons of pipe. Colorado Liberty Pipeline has – awarded the installation contract for 140 miles of 24” pipeline in Wyoming and Colorado. Work began earlier this summer. Import Supply – The June import total was 74,035 tons which was above the license tally from last month. July import licenses shows a drop in volume to 54,527 tons. The August forecast, with 11 of 22 days summed, is way down at 47,087 tons. The top import item for the month of May 2021 was Carbon ERW 4 ½” not over 16” OD with 22,780 tons. The price was $865/ton. This is up $42/ton over last month.
Preston Pipe Report – August 2021
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