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NSSMC Receives Order of 130 t/t of Plates, UO Pipes for Saudi Arabia
Nippon Steel & Sumitomo Metal (NSSMC) won a bid of 47 thousand tons (abbreviated as t/t) of UO pipes related to an international tender on 132 t/t of UO pipes invited by Aramco of a Saudi Arabian state-run oil company. The remaining 85 t/t were awarded to its affiliated company of NPC in which NSSMC and Sumitomo invest 33% and 16% respectively through Sumitomo as a agent. NPC receives supply of steel plates for UO pipes from NSSMC. Accordingly, NSSMC has received orders of the whole quantity. Shipments are expected to start from the early autumn (September) this year.

Those pipes are used for the pipeline with 300 km long for the re-development project of the Hawiyah gas field. Armco is said to install the total length of pipeline of 3,000 km to develop the area in future, and if so, total demand for UO pipes is expected to reach as many as 1.3 million tons. In 2018 as well, pipes are expected to be procured.

Japan's cumulative export quantity of steel plates in January-May was 772 t/t, down 38.4% from the same period last year. It is because its export quantity of plates for shipbuilding for Korea dropped by 55.8% ditto and there are almost no projects related to energy. These orders from Armco are the largest ones related to energy in 2017 till now.

In this tender, NPC of a local mill preferentially received the order. For the next tender, if a local mill is also preferred, there is a possibility that NSSMC again supplies a large quantity of plates.
last modified : Tue 11 Jul, 2017 [11:45]
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