US senator asks TransCanada to avoid Indian steel in pipeline

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March 2, 2012

WASHINGTON: TransCanada has been asked by yet another top US Senator not to use steel made in other countries, including India, in the construction of the controversial, multi-billion Keystone XL pipeline.

"In the past, TransCanada has chosen to buy their steel from India. When it comes to the Keystone Pipeline, the steel should be stamped with 'made in America," Senator Tom Casey said.

March 2, 2012

WASHINGTON: TransCanada has been asked by yet another top US Senator not to use steel made in other countries, including India, in the construction of the controversial, multi-billion Keystone XL pipeline.

"In the past, TransCanada has chosen to buy their steel from India. When it comes to the Keystone Pipeline, the steel should be stamped with 'made in America," Senator Tom Casey said.

"Building a portion of the Keystone Pipeline has the potential to have huge economic benefits for the country, but we won't see the full economic impact from this project if the steel used to build the pipeline is made outside of the US," he said.

A day earlier, TransCanada announced that it would proceed with a $2.3 billion segment of the Keystone XL Pipeline project from Oklahoma to Texas.

Last month, US lawmakers had asked the company to immediately disclose that it is not using steel made in India for trans-America pipeline — Keystone XL.

At a Congressional hearing in December, TransCanada Corporation had told lawmakers that the steel to be used in trans-America pipeline — Keystone XL — would be produced in North America, not India.

The pipeline will carry oil from Cushing, Oklahoma to the US Gulf Coast – a process that could begin as early as 2013.

In a letter to TransCanada CEO Russell Girling, Casey said the company has a history of using foreign steel for its projects. In 2009, the company purchased steel from India to complete a project.

The company's decision resulted in layoffs for 2,000 US steelworkers, he claimed.

"I cannot stress enough the importance of using American goods and labor in the development of any pipeline project. Job creation is one of the key arguments used in favor of the project yet there have been no assurances that such opportunities will benefit Americans," he wrote.

Casey represents Pennsylvania which has a sizeable steep industry.

When a project uses US-made steel it has the potential to provide a boost to Pennsylvania, he said, adding that in 2010, the steel industry was responsible for 80,000 jobs in the state and added nearly $10 billion to the state's economy.


Courtesy: economictimes