(by Paul Vivian and Rick Preckel, www.prestonpipe.com) Market Monitor – The pipeline issue out of the prolific Marcellus Shale has gotten completely ridiculous. Gas prices during late February at the Algonquin City Gate hit $23.27/mmbtu while the Henry Hub price was $5.53/mmbtu. A year ago, the Algonquin price was over $17/mmbtu. We generally focus on the index price at the Heny Hub but of course pipeliners, and residents and businesses in those areas, look at what the regional prices are. This February price differential shifted our focus to this topic so we could once again discuss the challenges of pipeline construction out of the Northeast and the lack of any action on a permitting reform bill. In the chart at left, the gray bars reflect the annual price range of natural gas at three northeastern trading hubs in comparison to the Henry Hub. On top of the disadvantages this brings to the gas using public in the Northeast, over 50% of the electricity generated in the Northeast comes from natural gas. This in a region with the most prolific gas basin in the country. Import Supply – The January import total was 85,962 tons which was 15,000 tons over the license tally from last month. February 2023 import licenses are up at 112,514 tons. The March linear forecast, with 9 of 23 days summed is up still at 128,577 tons. The top import item for the month of January 2023 was carbon ERW, over 4 ½” OD not over 16” OD, at 35,700 tons, volume down by half. The price was $1,545/ton which is down $140/ton or about half of last months increase. Price seems to have no impact on buying patterns.
Preston Pipe Report – February 2023
Pipe Exchange
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