(by Paul Vivian and Rick Preckel, www.prestonpipe.com) Market Monitor – The Mountain Valley Pipeline saga continues. In the last Report, Equitrans had asked the Supreme Court to vacate the stay put in place by the Virginia court. The Supreme Court agreed. Subsequently, on August 11, a US appeals court rejected a challenge to federal approvals for the Mountain Valley Pipeline, in a decision that likely ends legal fights over the construction of the project. While opponents vow to fight on, the US Pipeline and Hazardous Materials Safety Administration ordered the Mountain Valley Pipeline to undertake a series of safety inspections on the project arguing that segments of pipe left exposed or buried underground for years due to project delays could pose a safety risk. In its safety order, the PHMSA said segments of the pipe have been buried without certain corrosion protections installed or exposed to the elements and ultraviolet radiation “for long periods of time.” The PHMSA order was issued August 11, the same day the 4th US Circuit Court of Appeals rejected the aforementioned legal challenge to the project. Cactus Inc., a pressure control company, recently acquired Flexsteel, a producer of spoolable pipeline products (and a competitor to steel line pipe). Cactus has said that the ability to combine legacy Cactus services with a spoolable linepipe solution provides good synergies. The Flexsteel segment had record revenue in 2Q2023 according to Cactus’ second quarter earnings call. Import Supply – June line pipe imports totaled 121,402 tons which is right inline with the license tally reported last month. July 2023 import licenses followed projections to end the month at 93,578 tons. The August linear forecast, 10 of 23 days summed, is higher at 112,057 tons. The top line pipe import item for May was CARBON ERW, OVER 4 ½” OD, NOT OVER 16” OD, at 47,641 tons – continuing growth for the second month. The price was $1,061/ton; down $116/ton from last month.
Preston Pipe Report – August 2023
Pipe Exchange
14025 West Road
Suite 100
Houston, TX 77041
- Phone: 713.934.9480
- Fax: 713.934.9490
- Email: sales@pipexch.com