The American Line Pipe Producers Association (ALPPA), a US domestic coalition of large diameter line pipe producers, has challenged recent claims that US pipeline developers are unable to source large diameter welded pipe (LDWP) for their projects domestically. The press release added that steel Section 232 tariffs imposed by President Trump are not placing US pipeline projects in jeopardy due to cost. ALPPA expressed opposition for pipeline operators to be excluded from the Section 232 steel import tariffs as the industry has been injured due to dumped and subsidized imports of LDWP.
In regards sourcing, the US LDWP industry is reportedly now operating at a capacity utilization rate below 40 percent and is “ready, able and eager to supply pipeline to operators if given the opportunity.” Tim Brightbill, trade counsel to ALPPA stated, "US producers can make virtually everything demanded for American pipeline projects, and they do so using domestic steel." Brightbill added that complaints by industry groups such as the Interstate National Gas Association of America (INGAA) and the Association of Oil Pipe Lines (AOPL) are unfounded.
In regards costs jeopardizing pipeline projects, Brightbill added that the cost for the pipes make up only around 20 percent of the total pipeline project cost. Brightbill added that “operators continue to rely on imports and US LDWP producers continue to lose bids despite the 232 tariffs.”