(by Paul Vivian and Rick Preckel, www.prestonpipe.com) Market Monitor – In the latest Dallas Fed Energy Survey, a question was asked regarding Permian Basin oil egress capacity. 92% of the firms responding said they didn’t expect any oil bottlenecks through at least 2026. Shell Pipeline Co. LP has made final investment decision (FID) to proceed with its offshore Rome Pipeline project. The pipeline, which will run adjacent to existing corridor pipelines and extend about 100 miles in length, will bring additional capacity to Shell’s Gulf of Mexico footprint. New Fortress Energy said it shipped the first cargo of liquefied natural gas from Mexico on September 30 following the start-up of its $1 billion floating facility in the Gulf of Mexico. New Fortress in early August completed preproduction at the first train of its Fast LNG project in Altamira and said a first partial cargo from the facility was delivered to its La Paz power plant in Mexico. Enbridge Inc. announced in early October that it will invest approximately $700 million on the construction of new crude oil and natural gas pipelines in the US Gulf of Mexico to support BP’s Kaskida development. The Canyon Oil Pipeline System project will have an estimated capacity of 200,000 bbl/d, transporting crude oil from the Keathley Canyon area to the Green Canyon 19 platform operated by Shell Pipeline Co. LP. The Canyon Gathering System will have a capacity of 125 mmcf/d, connecting to Enbridge’s existing Magnolia Gas Gathering Pipeline. Both pipelines are expected to be operational by 2029. No tonnage estimate yet as detailed design and procurement activities don’t begin until early next year. Import Supply – The August line pipe import total was 93,629 tons which was about 20% above the license total published last month. September licenses ended the month at 113,305 tons. Through October 14th, line pipe licenses totaled 35,771 tons leading to a linear forecast of about 82,000 tons. Carbon ERW, over 4 ½”, not over 16”, was the import category with the highest volume for August at 42,209 tons with a CIF value of $1,048/ton. This represents an increase of $1/ton from last month.
Preston Pipe Report – October 2024
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14025 West Road
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