Trump steel tariffs pose a problem for planned U.S. pipeline projects

first_imgTrump steel tariffs pose a problem for planned U.S. pipeline projects FacebookTwitterLinkedInEmailPrint分享S&P Global Market Intelligence ($):President Donald Trump’s plan to double tariffs on steel imported from Turkey to 50% could place additional financial pressure on Kinder Morgan Inc.’s proposed 1.98-Bcf/d Gulf Coast Express Pipeline LLC and dampen prospects for future U.S. natural gas projects.The escalating trade headwinds for domestic pipeline operators come at a time when transportation constraints in the prolific Permian Basin shale play have increased demand for new takeaway capacity to deliver supplies to market for use in exports and to serve power-hungry Mexico.The Houston-based Kinder Morgan, which moves more than a third of the gas consumed in the U.S., is sourcing 144,000 tonnes of steel pipe from Turkish producer Borusan Mannesmann to be used for Gulf Coast Express. Welspun Tubular is set to produce about 175,000 tonnes for the pipeline at its Little Rock, Ark., mill.“We continue to be concerned that these sorts of trade actions threaten important energy infrastructure projects, and ultimately hurt American consumers and businesses,” the Interstate Natural Gas Association of America said in a statement. The trade group said “companies that made purchasing agreements months or years ago, before the announcement of Section 232 tariffs, are now being unfairly punished for participating in international trade.”Elsewhere, Trump’s trade war with allies and adversaries alike is affecting U.S. pipeline projects.Cheniere Energy Inc. has requested a tariff exclusion for its Midship pipeline project. The pipeline is set to stretch from the Anadarko Basin in Oklahoma to pipelines that will allow up to 1.44 Bcf/d to be sent to the U.S. Gulf Coast. It is sourcing pipe for that project from a Canadian supplier. The U.S. Department of Commerce rejected a similar exclusion request by Plains All American Pipeline LP for more than 155,000 tonnes of steel for its Cactus II crude pipeline. The operator is sourcing steel for its pipeline from a Greek manufacturer.More ($): Trump’s Turkey tariff hike expected to hit Kinder Morgan gas pipeline projectlast_img

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