(by Paul Vivian and Rick Preckel, www.prestonpipe.com) Market Monitor – In addition to the positive FID reached on the Blackcomb pipeline that we wrote about last month, there are several other gas pipelines out of the Permian Basin that are in some stage of development. Blackcomb is the only one that has been approved AND has taken a positive FID. Other pipelines that have been approved include the Saguaro Connector a 48” 155 mile pipeline from the Waha hub to the Mexican boarder crossing; the Apex Pipeline – a 42”, 563 mile pipeline from the Permian to Port Arthur; and the Warrior Pipeline – a 42”, 325 mile pipeline to the Dallas area. Another pipeline is also in development that has yet to be approved. The DeLa Express is a wet gas pipeline from the Permian to Calcasieu Pass, Louisiana – a 42” 645 mile project. The DeLa Express also includes 6 laterals which add another 60 miles of 42”, 71 miles of 30”, and 8 miles of 24”. The public comment period for the Dela Express, according to FERC, ends on September 23, 2024. In addition to the 2.5 bcf/d of takeaway capacity that the Matterhorn express adds to the region, the Blackcomb, Saguaro Connector, and Apex would add another 7.3 bcf/d. These three pipelines are anticipated to be in service starting in 2026 through 2028. The Warrior Pipeline and the DeLa Express would add an additional 4 bcf/d to the infrastructure. Gas production in the Permian Basin hit 18.86 bcf/d in July. All these pipelines, if built, would consume about 1.5 million tons of pipe. Gas prices at the Waha hub spent a record number of days below zero in 2024 highlighted by a recent stretch that has seen prices as low as ($6.41)/mmbtu on August 29th. Prices have improved since that date on the anticipation of the startup of the Matterhorn Express in September. Import Supply – The July line pipe import total was 76,488 tons which was about 10% above the license total published last month. August licenses ended the month at 78,341 tons. Through September 16th, line pipe licenses totaled 76,512 tons leading to a linear forecast that would be much higher than recent monthly averages. Licensing will almost certainly slow from what we hear of ordering. Carbon ERW, over 4 ½”, not over 16”, was the import category with the highest volume for July at 21,022 tons with a CIF value of $1,049/ton. This represents an increase of $51/ton from last month.
Preston Pipe Report – September 2024
Pipe Exchange
14025 West Road
Suite 100
Houston, TX 77041
- Phone: 713.934.9480
- Fax: 713.934.9490
- Email: sales@pipexch.com