(by Paul Vivian and Rick Preckel, www.prestonpipe.com) Market Monitor – Line pipe shipments remain at historically low levels. Small diameter shipments are improving from recession lows. PHMSA has issued an advisory bulletin to remind pipeline facility owners and operators that the “Protecting our Infrastructure of Pipelines and Enhancing Safety Act of 2020” contains a mandate requiring operators to update their inspection and maintenance plans to address eliminating hazardous leaks and minimizing releases of natural gas. Operators must also revise their plans to address the replacement or remediation of pipeline facilities that are known to leak based on their material, design, or past operating and maintenance history. The statute requires pipeline operators to complete these updates by December 27, 2021. We’ve been talking about pipe used in replacement applications for some time. This may finally trigger an increase in demand for maintenance applications. More about that potential demand in future issues of the Report. Pipeline News – TC Energy has officially canceled the Keystone XL pipeline project after Biden’s denial of a border crossing permit in January. Enbridge Inc. had a key permit for its Line 3 Replacement pipeline upheld by the Minnesota Court of Appeals, removing a potential delay for the project. The court affirmed a Certificate of Need and Routing Permit granted by the Minnesota PUC. PennEast is awaiting a Supreme Court decision on whether or not it can use federal eminent domain to acquire land needed for the construction of its 120-mile, 36” natural gas pipeline. The decision is expected in late June. Taproot Rockies Midstream LLC has been awarded an acreage dedication for crude gathering by Confluence Resources for its Platte River position. This brings Taproot’s current dedicated acreage to over 325,000 acres from five producers. Import Supply – The April import total was 60,135 tons which was about 5,000 tons above the license tally from last month. May import licenses show a similar volume reporting 59,435 tons. The June forecast, with 10 of 22 days summed, is at 63,140 tons. Import volumes in line pipe have ‘settled’ in to a pattern matching the lower shipment performance. The top import item for the month of April 2021 was Carbon SAW over 16” OD not over 24” OD with 15,790 tons. The price was $1,006/ton. This is an item we have not seen on the top item list in some time and reflects the tight HRB situation for domestic producers.
Preston Pipe Report – June 2021
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