When we see idle pipe, we see opportunity. Idle pipe buried underground is – by definition – underutilized inventory. When left underground, it takes up resources to continuously monitor, presents a danger to equipment, and may hinder landowners from fully utilizing their property. When reclaimed, it re-enters the market as the ideal construction material for a variety of projects, saving buyers time and money.
Here’s how we help sellers and buyers realize value from transforming idle pipe into ideal surplus resources.
Where To Find Idle Pipe
Idle pipe can often be found beneath ranchland, farmland, or pastures from discontinued projects. The buried pipe, once with a purpose, now sits with no direction. These lines may have been discontinued due to age, low gas volumes, integrity decisions, acquisitions, or excessive operating costs. Whatever the cause, the line now sits underground, non-producing and taking up space.
The Hidden Value of Idle Pipe
Idle pipe is valued based on several different characteristics, including:
- Diameter
- Wall thickness
- Estimated install date
- Type of pipe coating used
If the coating contains asbestos-containing materials (which is the case for many lines installed around or before 1950), then CPI utilizes its comprehensive asbestos removal process to reintroduce the material back into the market safely.
Once reclaimed, idle pipe can be repurposed for a wide variety of projects. These projects include:
- Casing pipe
- Culverts
- Dredge pipe
- Road bore casing
- Caissons
- Piling pipe
- Bollards
- Flume pipe
Reclaiming and reusing surplus pipe is often cheaper and more readily available compared to new steel. Utilizing these surplus assets reduces buyers’ costs and lead times for projects.
CPI’s Expertise in Pipe Reclamation
At CPI, we have reclaimed over 2,500 miles of used steel pipe since 1981. We have helped landowners and gas companies alike extract idle pipe and realize value. Pipeline removal services can help gas companies recover value from non-performing assets quickly and efficiently. Our turnkey offerings handle all aspects of pipeline removal, including digging, removing, restoring the right-of-way, and transporting the pipe.
Our 7-step removal process ensures:
- Environmental safety
- Landowner satisfaction
- Regulatory compliance
- Efficient logistics
Case Study: From Idle to Income
A large midstream company faced significant operating expenses while storing idle pipe across multiple yards across several cities in the Midwest. These yards included over 15 miles of 36-inch pipe. The operator quickly recovered value from this surplus pipe by leveraging the expertise of CPI Pipe & Steel’s team.
The CPI team successfully transported more than 400 loads of this material to our pipe yard within a one-month timeframe. This partnership helped the operator successfully recover value from idle, unusable assets quickly and efficiently. The pipe was reintroduced into the market for structural use, reducing operating costs and generating revenue.
Conclusion
Idle pipe should not be viewed as waste, but as an opportunity. Through partnering with CPI Pipe & Steel and utilizing our pipe removal services, companies and landowners can unlock the capital potential of idle assets. Learn more about our used pipe removal at https://cpipipe.com/oil-pipeline-removal-company/used-pipe-removal/.