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US Oil Firms ConocoPhillips & Encana Challenge Pipeline Surcharge for Steel Tariff- The 21st China (Guangzhou ) Int’l tube & pipe Processing Equipment Exhibition
8/22/2019 管材展-钢管展-steel tube expo-tube &pipe expo |
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Reuters reported that two US shale producers have challenged an energy pipeline operator’s proposed surcharge for the Trump administration’s 25% tariff on imported steel, raising the stakes for pipeline builders facing higher construction costs. US oil producer ConocoPhillips and a unit of Canadian producer Encana Corp asked the Federal Energy Regulatory Commission to reject Plains All American Pipeline’s proposed tariff surcharge on its Cactus II oil pipeline. Houston-based Plains this month proposed charging shippers a 5 cents per barrel fee on its 670,000 barrel-per-day Cactus II pipeline next April to offset higher construction costs due to the steel tariffs.
In their filing, ConocoPhillips and Encana said Plains’ surcharge was premature because the US Commerce Department may still grant the pipeline operator an exemption before the fee goes into effect in April. The companies said surcharges are generally disfavored by FERC.
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