Despite Pledge by President Keystone Does Not Require U.S. Steel
The new Keystone XL pipeline project will not be required to purchase steel made in the U.S. to earn approval for construction from the White House administration, said President Donald Trump’s administration late last week, despite repeated claims by the president himself.
The executive order by the president that mandates the use of steel made in the U.S. is specific to pipelines that are new or that need repairs, said Sarah Sanders a spokesperson for the White House.
Since Keystone is under construction, the steel is there already and it would be difficult if not impossible to turn it around, added Sanders.
That was welcome news for TransCanada Corp as the company moves forward with the project worth $8 billion. The pipeline will have a span of more than 1,179 miles starting in Alberta through three U.S. states – Montana, South Dakota, Nebraska – prior to connecting to a network that is already in existence that feeds crude to refineries in the Gulf Coast of the U.S.
This line has a capacity of carrying 830,000 barrels of crude per day including some from the Bakken shale in North Dakota.
In 2012, the company announced that it was expecting half of the steel that totals more than 821,000 tons to build the complete pipeline would be produced in the U.S.
The remainder of steel was expected to be produced in India, Italy and Canada.
However, exempting the Keystone XL from the requirement of the President to use steel made in the U.S. seems to go against the public comments the president has made. Trump repeatedly has boasted he forced the pipeline companies into agreeing to use steel from the U.S. in the projects they were completing.
During a meeting in February with CEO from manufacturing firms, Trump told CEO of U.S. Steel Mario Longhi that the pipe would be coming from the U.S. that was used in the Keystone XL project along with that used for the Dakota Access pipeline.
During a mid-February press conference, Trump said in exchange for using powers that the government has to make the pipeline happen, the White House wanted them to use steel made in the U.S.
He then repeated the same claim just one day later during a tour in South Carolina at a Boeing manufacturing plant.
Later that same weekend, Trump said something similar at rally he was at in Melbourne, Florida