(by Paul Vivian and Rick Preckel, www.prestonpipe.com) Market Monitor – The US Department of Transportation’s Pipeline and Hazardous Materials Safety Administration proposed a new set of safety requirements for the operators of CO2 and hazardous liquid pipelines. The requirements, which have been under development for nearly three years, are intended to strengthen existing standards for CO2 and hazardous liquid pipelines and, for the first time, establish new standards for transporting CO2 in a gaseous state via pipeline. Most of the regulations revolve around design, installation, operation, maintenance, reporting requirements, and emergency response, but also include requirements that must be adhered to when converting existing pipelines to transport CO2 in different phases. All CO2 pipeline operators would be required to provide training to emergency responders and ensure that CO2 detection and other safety equipment is available to those responders. More detailed vapor dispersion analyses would be required to better protect the environment and the public in the event of a pipeline failure. For pipe-makers, the new regulations include enhancements to the design of the pipeline to mitigate fracture propagation through the pipe. The proposed modifications mirror those in the existing alternate maximum allowable operating pressure design requirements, updated for the current incorporated-by-reference version of API-5L. Finally, the proposed regulations create a single section that addresses spike hydrostatic pressure testing that will apply to all Part 195 regulated (hazardous liquids and carbon dioxide) pipelines. Import Supply – The November line pipe import total was 91,463 tons which was about 8,000 tons above the license total published last month. December licenses ended the month at 98,410 tons which was about 10% below the projection from December’s Report. Through January 13th, line pipe licenses totaled just under 60,000 tons leading to a linear forecast of about 165,000 tons. While this would prove high compared with recent averages, large OD licenses have already hit recent average levels. Carbon ERW, over 4 ½”, not over 16”, was the import category with the highest volume for November at 31,835 tons with a CIF value of $1,105/ton. This represents a decrease of $24/ton from the prior month.
Preston Pipe Report – January 2025
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