(by Paul Vivian and Rick Preckel, www.prestonpipe.com) Market Monitor – FERC staff has issued the final environmental impact statement (EIS) for Tennessee Gas Pipeline’s Mississippi Crossing Project and Southern Natural Gas’ South System Expansion 4 (SSE4) Project, advancing two major natural gas expansion projects toward Commission review. The Mississippi Crossing Project would add approximately 2.1 bcf/d of firm transportation capacity through construction of about 199 miles of new 36- and 42-inch pipeline while the South System Expansion 4 Project would provide approximately 1.323 bcf/d of additional transportation capacity through 291 miles of pipeline looping. Mountain Valley Pipeline has received FERC approval to begin construction of its 550-MMcfd Southgate Amendment Project in North Carolina. The project is 31.3 miles of 30”. The supply mix of the large diameter market has certainly changed. During the most recent construction cycle – 2017-2019 – imported large diameter line pipe totaled 1.7 million tons, 1.6 million tons, and 1.3 million tons respectively, for 2017, 2018, and 2019. This year, large diameter imports are on track to reach about 600,000 tons. What’s changed? For line pipe the biggest change is the S232 and the tariff increase to 50%. Second, top import countries such as Greece, India, S. Korea, and Canada had AD duties assigned to them due to a trade case. Duty rates were effective in March/May 2019. Some rates, as modified by subsequent administrative reviews, are more effective than others. Lastly, the recent permitting reforms should tilt supply toward domestic producers for applicable projects. That is due to potentially quicker response time available from domestic sources.
Preston Pipe Report – July 2026
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