INGAA Foundation study projects robust US need for gas pipelines

June 18, 2018

The US and Canada will need to invest a combined $791 billion, in real 2016 dollars, or an average $44 billion/year, for new natural gas, crude oil, and natural gas pipeline transportation systems from 2018 through 2035, the INGAA Foundation Inc. predicted in a new report.

Pipeline steel tariffs, which were among those US President Donald Trump imposed after the report was largely complete, obviously would push costs higher, officials from the foundation and from ICF Strategic Consulting in Fairfax, Va., which prepared the report, said at a June 18 briefing.

"The tariffs have introduced significant uncertainty. I understand there are more than 15,000 applications for exclusions already," said Donald F. Santa, president of the Interstate Natural Gas Association of America as well as the foundation.

Santa explained that when Trump directed the US Department of Commerce last year to develop a "Buy American" plan for new domestic pipelines, it found that about 75% of the higher-quality steel that US steelmakers would use to make oil, gas, and NGL pipe would have to be imported because there's no domestic capacity to make the higher quality grade.

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