LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » World News

Energy executives lament Trump tariffs as costs rise on pipeline projects

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Updated: Sat, Aug 11, 2018
12:45 am
Reuters
RELATED NEWS
Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details
Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities
#GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here #GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here
India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global
RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21 RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21

U.S. President Donald Trump`s proposal to double tariffs on steel and aluminium from Turkey could push up costs even further for domestic oil and gas pipeline projects, as energy executives said they were already struggling from earlier tariff rises.

There are more than a dozen U.S. energy pipelines on the drawing board, some of which are still seeking financing. The projects would pave the way for greater U.S. oil and gas exports and relieve a bottleneck in West Texas shale fields that is starting to pinch output in the region.

Turkey delivers just 4 percent of steel mill imports, valued about $1.18 billion last year, according to the U.S. Department of Commerce. But doubling tariffs on a supplier could force buyers to turn to other steel makers and, in turn, lift steel prices that have already ballooned in recent months.

On Friday, Trump authorized a doubling of tariffs on Turkish steel and aluminium imports - to 50 percent and 20 percent, respectively - ratcheting up a diplomatic dispute with the NATO-member country.

The Trump administration`s original move in March to raise tariffs on most steel and aluminium imports was proposed to safeguard U.S. jobs against overseas rivals.

That had already added $40 million to the cost of a Plains All American
crude oil pipeline that will use steel supplied by a Greek company, Plains executives said.

"We are moving forward with the project, but believe that imposing a tax on pre-existing orders is unjust, especially considering the specific materials we purchased abroad were not readily available in the U.S.," Willie Chiang, Plains` chief operating officer, said on Tuesday.

The trade actions "threaten important energy infrastructure projects," said Catherine Landry, a vice president at trade group Interstate Natural Gas Association of America. Companies were "being unfairly punished for participating in international trade," she said.

Kinder Morgan Inc , the second largest North American pipeline operator, had already ordered nearly half of the specialized pipe needed for its Gulf Coast Express project from Turkish steel maker Borusan Mannesmann before the original tariff went into effect, spokeswoman Sara Hughes said.

The Houston-based company on Friday declined to comment on the impact on the project of the doubling of the tariff. The $1.75 billion Gulf Coast Express is a natural gas line being constructed from West Texas to the U.S. Gulf Coast.

Kinder Morgan had applied to the U.S. Commerce Department for an exemption to the original, 25 percent tariff but had not yet received a decision, the spokeswoman added.

Alan Madison, a spokesman for Borusan Mannesmann`s U.S. subsidiary, said the company and its Turkish parent were still studying Trump`s new proposal and declined to comment further.

The Turkish currency fell more than 18 percent on Friday, increasing its costs to import raw materials, but making exports relatively cheaper.

"The Turks can export to many other countries, but with a weak lira, their products become cheaper to buy. The cheap lira actually can help increase their export volume," said George Gero, a managing director at RBC Wealth Management who follows metals markets.

Steel futures on Friday were up 1 percent at $907 per ton on the New York Mercantile Exchange, but are up 46 percent from $621 per ton a year ago.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Economy
RELATED NEWS
Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details
Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities
#GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here #GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here
India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global
RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21 RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21

LATEST NEWS

7th Pay Commission latest news today: Big Holi gift for Central government employees! Center issues this notification on 7th CPC leave rule

Reliance Jio low-cost laptop 'JioBook' that runs on Android coming soon; Here's all you need to know

Anil Kapoor digs out priceless throwback picture to wish ''best daughter'' Rhea on birthday

Tottenham edge past Fulham thanks to Adarabioyo own goal

PUBG New State game pre-registrations: 5 million mark hit on Google Play in just 1 week; Check APK download link

Indian Army conduct basketball, wushu competitions for youth in Jammu and Kashmir's Budgam

Gurugram college students protest, demand online exam

Stocks in Focus on March 5: Heranba Industries, MTAR Technologies Fertilizer Stocks, MAX Healthcare to WIPRO; here are the 5 Newsmakers of the Day

PUBG Mobile India update: Important message from Krafton! India relaunch soon? Check here

Apple's new Find My feature will let users know if they are being tracked

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved