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| CNPC Tender To Take UO Pipes For WEPP-2 |
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It is likely that China National Petroleum Corp (CNPC) will hold its international tender this week to purchase X80 UO pipes anew for construction of China's second West-East natural gas pipeline project (WEPP-2), according to information made available in Tokyo. It is uncertain what quantity CNPC will require in its international tender this time. One estimate describes CNPC's requirements as a total of around 150,000 tons. There is a predominant view that a considerable amount of the requirements will be secured in firm orders with Baosteel Co Ltd. The company commissioned its new production facilities for UO pipes last year. Until now, China's central government has implemented economic stimulus measures one after another, in which steel demand is focused on materials for construction so far. Therefore, Baosteel has yet to find an opportune time for sales of its high-grade products. As to steel products for WEPP-2, though, Baosteel is considered best placed to respond with its supplies among China's major integrated steelmakers. In this connection, CNPC is expected to give Baosteel a positive assignment to cover steel supplies for WEPP-2. As a result, there is speculation that CNPC may allocate 50,000 tons or 100,000 tons of UO pipe supplies to Japan's integrated steelmakers in its international tender this time after placing UO pipe order with Baosteel for a specified amount. Besides new UO pipe purchases for WEPP-2 by tender, CNPC is expected to take materials from Chinese steel mills by negotiations in relation to China's other new pipeline projects whose construction is scheduled to start this year. The materials required, totaling nearly 1,000,000 tons, break out as X70 UO pipes, spiral pipes, and heavy plates and HR coils for pipe production. The new pipeline projects except WEPP-2 include one to connect Qinhuangtao with Shenyang and another to link Taishan with Qingdao. Also, it is understood that CNPC will hold another international tender shortly to purchase X80 heavy plates and HR coils as line pipe materials for WEPP-2. |
| last modified : Thu 22 Jan, 2009 [10:12] |
