Steel
Major U.S. energy companies including Plains All American Pipeline, Kinder Morgan and Hess are among many seeking exemptions from steel import tariffs, Reuters reports.
The U.S. Commerce Department has received nearly 21,000 requests for exclusions, nearly a quarter of them involving pipes and related materials since the Trump administration imposed levies this year; initial decisions are expected later this month.
The pipeline industry could face higher costs from tariffs as 77 percent of steel used in U.S. pipelines is imported, and benchmark hot-rolled U.S. steel coil prices are up more than 50 percent from a year ago, states Carl Surran, Seeking Alpha news editor.
PAA is seeking a tariff exclusion for its 500-mile Cactus II oil pipeline, which will connect west Texas oil fields to export docks near Corpus Christi; it expects to receive its first material from a Greek manufacturer this month.
Kinder Morgan wants an exclusion for its Gulf Coast Express natural gas pipeline from west Texas to the Gulf Coast, and it has ordered 47 percent of specialized pipe needed for the project from a Turkish steel maker; Kinder Morgan says only one U.S. producer could meet its needs but would be unable to supply the volume required within the necessary timeline.
Hess cites safety concerns in its request to use Japanese pipe for its Stampede offshore project in the Gulf of Mexico.
