TransCanada’s Keystone pipeline to be exempted from ‘Buy American’ provisions

TransCanada’s Keystone pipeline to be exempted from ‘Buy American’ provisions


Calgary — The Globe and Mail

Published Friday, Mar. 03, 2017 1:56PM EST

Last updated Friday, Mar. 03, 2017 2:00PM EST



TransCanada Corp.’s Keystone XL pipeline is being exempted from so-called “Buy American” provisions that would force it to use pipe made solely from U.S. steel, according to media reports.


Such an exemption by the administration of President Donald Trump would remove a major impediment to TransCanada proceeding with the $8-billion (U.S.) project that had been rejected by the Obama administration in 2015. With an executive order in January, Mr. Trump set the wheels in motion for the application to be resurrected.

The President has called for a stipulation that U.S. steel be used in new, expanded or retrofitted pipelines “to the maximum extent possible.”

“The Keystone XL pipeline is currently in the process of being constructed, so it does not count as a new, retrofitted, repaired or expanded pipeline,” Politico quoted a White House spokeswoman as saying.

It was not clear what the White House official meant when she said the project is being constructed. The southern portion was split off from the initial blueprints and constructed as the Gulf Coast project. It began shipping oil in 2014. The remainder of the project has been in limbo since then. TransCanada resubmitted its application in late January.

TransCanada would not comment directly on the Buy American issue, or whether it has been told that it is exempt. However, spokesman Terry Cunha pointed out that half the pipe the company purchased in 2012 for Keystone XL was manufactured in the United States, and that 75 per cent originated in North America.




About prosperitysaskatchewan

Consultant on Saskatchewan's natural resources.

Posted on March 3, 2017, in economic impact, oil, political. Bookmark the permalink. Leave a comment.

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