(by Paul Vivian and Rick Preckel, www.prestonpipe.com) Market Monitor – Intensity Infrastructure Partners and Rainbow Energy Center have announced a joint venture to build a new natural gas pipeline from the Bakken region in western North Dakota to the eastern part of the state. The proposed project will increase takeaway capacity in the Williston Basin for instate processing and consumption and will support increasing oil production. The 344-mile project will be constructed in two phases. Phase I includes 136 miles of 36” pipe from near Watford City to Washburn, ND, while Phase II consists of 208 miles of 30” pipe from Washburn to Casselton, ND. The target inservice date is July 2029. Coastal Bend LNG announced that it has initiated development of a 3.0 bcf/d LNG export facility to be located on the Texas Gulf Coast. The company expects to pre-file its Federal Energy Regulatory Commission permits during 2025. At the end of June, Kinder Morgan’s Tennessee Gas Pipeline Company, L.L.C. submitted the final paperwork with the FERC to bring its 2.1 bcf/d Mississippi Crossing Project into the federal review phase. The project includes 208 miles of new pipe including a 199-mile, 42” and 36” mainline from Greenville, Mississippi, to Butler, Alabama. TGP expects construction to begin in early 2027 with a late 2028 in-service date. The recently signed One Big Beautiful Bill Act was favorable to carbon capture projects. The most notable change is the increase in Section 45Q tax credits for carbon capture for enhanced oil recovery which went from $60/tonne to $85/tonne. Import Supply – The May line pipe import total was 143,782 tons which was about 24,000 tons higher than the license tally published last month. June licenses ended the month at 108,522 tons which was about 19,000 tons lower than the projection from June’s Report. Through July 14th, line pipe licenses totaled about 42,000 tons leading to a linear forecast of about 93,000 tons for the full month. Carbon ERW, over 4 ½” but not over 16”, was the import category with the highest volume for May at 48,423 tons with a CIF value of $934/ton. This represents a decrease of $174/ton from the prior month.
Preston Pipe Report – June 2025
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