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OIL AND GAS
Most NAFTA trade moves through pipelines, DOT says
by Daniel J. Graeber
Washington (UPI) Jul 25, 2013


TAP issues contract notice for pipeline construction
Zug, Switzerland (UPI) Jul 25, 2013 - The group planning a 540-mile natural gas pipeline through southern Europe said Friday it issued its next contract notice for the project's construction.

The Trans-Adriatic Pipeline is slated to transport natural gas from the second phase of the Shah Deniz natural gas field off the coast of Azerbaijan as early as 2019.

The project's consortium said it issued a contract notice for large-diameter valves used for the pipeline planned through Greece and across the Adriatic Sea to Italy.

"The potential suppliers need to demonstrate their ability to meet TAP's quality requirements and supply necessary volumes in accordance with the pipeline's development schedule," the consortium stated.

TAP is part of the so-called Southern Corridor, a network of gas pipelines meant to diversify a European energy sector influenced heavily by Russia.

The pipeline is designed to deliver as much as 700 billion cubic feet of natural gas per year.

Most of the commodities moving across the U.S. border with Canada did so through pipelines, the U.S. Department of Transportation said.

The Department of Transportation published North American freight numbers for May. DOT said trade included under the U.S.-North American Free Trade Agreement totaled $103.9 billion and transit increased for rail, trucks, pipelines and maritime vessels.

For pipelines, the department said the value of U.S.-Canadian trade increased the most when compared with other modes of transit.

Canada is the top crude oil exporter to the United States. The U.S. Energy Information Administration said an average 2.7 million barrels of oil per day was imported from Canada during the week ending July 18, a 6.6 percent increase year-on-year.

"U.S.-Canada pipeline trade comprised 94.8 percent of total U.S.-NAFTA pipeline trade in May," the department said Thursday.

Rail was the second-largest mode, moving about 15 percent of all traded commodities in North America. The glut of oil produced in North America has outpaced pipeline capacity, a trend those in the energy industry says leaves rail as the primary alternative shipping method for crude oil.

The Department of Transportation this week issued a series of proposals on rail safety. Crude oil transport by rail has become a growing safety concern in the wake of last year's deadly derailment in Lac-Megantic, Quebec.

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