Steel tariff will make certain pipelines, components more expensive, American Gas Association says

American Gas Association (AGA) President and CEO Dave McCurdy released a statement Thursday on President Trump’s planned tariff on steel.

“There is no doubt that a tariff on steel will increase the cost of certain pipelines and components,” McCurdy said. “Our industry has identified a number of specific challenges with obtaining some pipeline materials and equipment that are American made.

McCurdy noted that low-pressure pipelines can be replaced with plastic and that almost all of the natural gas plastic pipe used in the United State is American-made. Larger diameter, high-pressure pipelines, which carry higher volumes of gas across longer distances, are typically made of steel. Most steel valves used in the industry are also not currently made in the United States.

“America’s natural gas utilities support the President’s goals of increasing American jobs and enhancing economic growth,” McCurdy said. “We will continue to work with U.S. steelmakers and pipeline manufacturers to maintain an adequate supply for our operational needs. We look forward to working with the Administration on ways to comply with this executive order while maintaining affordable energy for the more than 177 million citizens that enjoy the benefits of natural gas.”