(by Paul Vivian and Rick Preckel, www.prestonpipe.com) Market Monitor – Pipeline News – The California Air Resources Board has set a target of capturing 13 – 20 million metric tons of carbon dioxide by 2030 and 100 million metric tonnes by midcentury. The infrastructure to handle half that amount would include 1,150 miles of new pipeline. According to a Bloomberg article, Energy Transfer LP and Williams Cos. Are collaborating with data center operators to build pipelines directly to their facilities. This move is in response to the expected surge in power demand from AI, computer-chip factories, and electric vehicles. While some of this power will come from renewable sources like wind and solar, a significant portion will rely on gas-fired plants as some data center companies are considering building gas-fired power generation facilities onsite. Both pipeline companies are working on expanding their current connections and establishing new ones to ensure a reliable gas supply for these facilities. White Water announced that White Water and Enbridge, through the WPC Joint Venture, have partnered with an affiliate of Targa Resources to reach final investment decision to move forward with the construction of the Blackcomb Pipeline. The Blackcomb Pipeline is designed to transport up to 2.5 bcf/d of natural gas through approximately 365 miles of 42-inch pipeline from the Permian Basin in West Texas to the Agua Dulce area in South Texas. The Blackcomb Pipeline will be constructed and operated by White Water and is expected to be in service in the second half of 2026, pending the receipt of customary regulatory and other approvals. Import Supply – The June line pipe import total was 96,978 tons which was about 12,000 tons below the license total published last month. July licenses ended the month at 69,480 tons. Through August 12th, line pipe licenses totaled 36,585 tons leading to a linear forecast of about 111,000 tons for the full month which we believe will prove to be too high. Carbon ERW, over 4 ½”, not over 16”, was the import category with the highest volume for June at 35,528 tons with a CIF value of $998/ton. This represents and increase of $25/ton from last month.
Preston Pipe Report – August 2024
Pipe Exchange
14025 West Road
Suite 100
Houston, TX 77041
- Phone: 713.934.9480
- Fax: 713.934.9490
- Email: sales@pipexch.com