Trump breathes life into major pipeline projects

Newly elected President Donald Trump has signed Executive Orders for two major pipeline projects which had been hindered by the previous administration.

President Trump, who has been in the job less than a week, signed orders for Energy Partners’ Dakota Access and TransCanada’s Keystone XL pipelines, as well as an order regarding the construction of steel pipes.

Before signing the Keystone XL Executive Order, President Trump said “We’re going to renegotiate some of the terms and if they’d (TransCanada) like we’ll see if we can get that pipeline built.

“Lot of jobs, 28,000 jobs, great construction jobs,” he said.

The CA$10.85 billion (US$8 billion) Keystone XL project has been deadlocked after President Barack Obama denied TransCanada a permit for the pipeline in November 2015.

The pipeline will link existing pipeline networks in Canada and the US to transport crude oil from Alberta and North Dakota to refineries in Illinois and the Gulf of Mexico.

The proposed 1,897-km, 36-inch diameter pipeline will run from Hardisty, Alberta, to Steele City, Nebraska.

In December 2016, the US$3.78 billion Dakota Access pipeline stalled after the US army corps engineers denied the project a permit to drill under the Missouri River.

The proposed 1,857-km pipeline will run from North Dakota, passing through South Dakota and Iowa, to a refinery in Patoka, outside Chicago, Illinois.

The North Dakota section will consist of approximately 576-km of crude oil pipeline, increasing in diameter from 12-30-inch.

The third Executive Order relates the construction of steel pipes in the US, and is intended to stimulate the country’s steel industry.

President Trump said he was “insistent” that if pipelines were going to be built the pipes should be made in the US.

“From now on we’re going to start making pipeline in the US. We build it in the US, we build the pipelines, we want to build the pipe.

“It’s going to put a lot of workers – a lot of steel workers – back to work.

“We will build our own pipelines, we will build our own pipes, like we used to back in the old days,” he said.

The upcoming edition of Pipelines International will include a full feature on the possible impact of Trump’s Presidency on the North American pipeline industry. Subscribe today.

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