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US allocates $196 million for natural gas pipeline modernization

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FILE PHOTO: Drilling rigs operate in the Permian Basin oil and natural gas production area in Lea County, New Mexico, U.S., February 10, 2019.    REUTERS/Nick Oxford/File Photo
Drilling rigs operate in the Permian Basin oil and natural gas production area in Lea County, New Mexico, U.S., February 10, 2019. — REUTERS/Nick Oxford/File Photo

(Reuters) – The U.S. government will award grants totaling $196 million for the repair and replacement of aging natural gas pipelines across 20 states, the Department of Transportation’s Pipeline and Hazardous Materials Safety Administration has announced on Tuesday.

The grants, funded by President Joe Biden’s Bipartisan Infrastructure Law, will support 60 modernization projects.

This round of funding will focus on replacing old, leak-prone pipes which pose safety hazards, inflate energy costs, and contribute to environmental harm.

“Aging, leak-prone natural gas pipes can be dangerous, drive up energy costs for families, and harm the environment, which is why the Biden-Harris Administration is supporting funds to replace aging pipelines,” said U.S. Transportation Secretary Pete Buttigieg in a statement.

“We are making significant progress in our efforts to cut pollution – including super-pollutants like methane – while creating thousands of good union jobs and lowering energy costs for Americans,” said White House National Climate Advisor Ali Zaidi.

(Reporting by Anmol Choubey in Bengaluru; Editing by David Gregorio)

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