U.S. tariffs on imported steel could raise the costs of Tellurian’s $15.2 billion Driftwood LNG export terminal under construction just south of Lake Charles, the company has warned in regulatory filings.
As FuelFix.com reports, the prospect of increased materials costs under the Trump administration’s 25% tariff on foreign-made steel stunned the oil and gas industry when the policy was announced.
Companies are building or planning dozens of steel oil and gas pipelines, LNG terminals and other infrastructure to accommodate the second U.S. shale boom.
Tellurian estimates the costs for its Driftwood pipeline will come in at $2.3 billion. The company will spend another $1.4 billion for a pipeline connected to the Haynesville shale play in Louisiana and $3.7 billion for another connected to the Permian. Those costs could rise, but the company did not say by how much.
