(by Paul Vivian and Rick Preckel, www.prestonpipe.com) Market Monitor – According to the US EIA there are about 14 new natural gas pipeline projects in the announced, applied, or approved phase of the FERC process. The total number of miles for these projects is about 2,500. Most of these indicate pipe ODs 24” and above. While the pipeline segment is suffering from lower production levels – at least on the crude oil side – and are in the aftermath of a dramatic capacity expansion, efforts to fix capacity issues that are driving gas flaring continues. States are continuing to tighten up on these regulations. There has been a moderate amount of news in the press related to opportunities presented by hydrogen both from an environmental standpoint and a pipeline construction perspective. In fact, we’ve lined up Gary Hines of the Pipeline Research Council International to speak at our conference on the topic of hydrogen pipelines. But hydrogen is not the only other pipeline opportunity. RNG or renewable natural gas is gaining more traction but currently doesn’t involve much in the way of pipelines. Recently, Sapphire Gas Solutions, a Conroe, Texas-based LNG and CNG solutions service company, was awarded the transportation and logistics contracts for seven farm-based renewable natural gas operations in central California. This contract involves compressing and transporting farm-generated natural gas, via truck, to existing gas pipelines. The next logical step in the ‘capturing’ process is to transport the gas via pipeline. The fight continues over the continued operation of Line 5 from Michigan to Canada. Should Line 5 be closed, at least 800 tanker rail cars and 2,000 trucks each day would be required to move the oil currently transported by the pipeline, according to Canada’s Natural Resources Minister, Seamus O’Regan. Import Supply – The March import total was 68,182 tons which was right on the license tally from last month. April import licenses show a drop to 55,695 tons. The May forecast, with 11 of 20 days summed, is at 47,736 tons. This would be below most recent activity but would continue a trend we have been seeing over the last few months. The top import item for the month of March 2021 was Carbon ERW over 4 ½” OD, not over 16” OD with 24,312 tons. The price was $761/ton. The price is up about $72/ton from the January/February average.
Preston Pipe Report – May 2021
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