TPi November 2014

business & market news

Tata Steel contract to supply pipes to Subsea 7

already do together on a global scale, demonstrating the value of Tata Steel in today’s oil and gas industry.” Phil Cran, Subsea 7’s category director for group supply chain management, said, “This global frame agreement reinforces the strong cooperation between Subsea 7 and Tata Steel, which has been developed over a period of multiple successful project deliveries. Subsea 7 fully expects this collaborative relationship to continue successfully in the future.” Tata Steel is Europe’s second largest steel producer, with steelmaking in the UK and Netherlands, and manufacturing plants across Europe. The company supplies products and services to markets that include construction, automotive, packaging, rail, lifting and excavating, energy and power, and aerospace.

Consisting of four separate projects, the latest contracts are believed to be worth in the region of £10mn, and will see Tata Steel supply in excess of 55km of pipe weighing more than 9,000 tonnes. As a supplier of products and services to the oil and gas industry, Tata Steel will supply around 28km of carrier pipe, more than 27km of sleeve pipe, girth welding and triple jointing, and the application of glass flake epoxy pipe coating. Welding and coating will take place at the company’s offshore processing centre in Hartlepool, UK. Tata Steel’s exploration and production commercial manager, Richard Broughton, commented, “Our work with Subsea 7 over the years has been extensive, particularly in the North Sea oil and gas industry, which has become an increasingly important market for us. The new framework agreement will extend the work our companies market. Steel pipe is dominant in oil and gas applications due to its low cost, durability and compression strength.” The high level of drilling activity and the efforts of oilfield service professionals to increase the size and scope of the USA’s network of transmission and distribution lines will drive gains. Plastic pipe demand is anticipated to rise at the most rapid pace of all materials, advancing 8.7 per cent annually until 2018. Growth will be spurred by the increasing use of plastic pipe at the expense of such materials as steel and concrete. In such applications as potable water and sewer and drainage, plastic pipe will increasingly be specified by consumers trying to reduce maintenance and replacement costs. Rebounding building construction expenditures will spur demand for plastic pipe used as conduit, gas distribution, and drain, waste and vent pipe. Polyvinyl chloride (PVC) was the leading plastic resin

Tata Steel has signed a global framework agreement with Subsea 7, a contractor in engineering, construction and subsea services to the offshore industry, which will formalise a 25-year working relationship between the two companies. The long-standing partnership, which has seen four multi- million pound North Sea contracts signed in the last 12 months alone, is cemented by the new agreement.

Representatives from Tata Steel and Subsea 7, including Phil Cran and Richard Broughton (back row, second and third from left, respectively) US demand for pipe to exceed $63bn

Tata Steel Europe Ltd – UK www.tatasteeleurope.com

used to make pipe in 2013 and will remain so in 2018. PVC pipe is used in such applications as potable water distribution, sanitary sewer, conduit and agriculture. Demand will benefit from the material’s durability and resistance to degradation. High-density polyethylene (HDPE), which accounted for the second largest share of plastic pipe demand in 2013, is expected to see the strongest gains through to 2018, boosted by the use of HDPE pipe in sewer and drainage, potable water and natural gas distribution applications. HDPE pipe offers such advantages as durability and corrosion resistance.

US demand for pipe is expected to rise 7.3 per cent per year to $63.5bn in 2018. Gains will be driven by strong growth in crude oil and natural gas activity, as pipe is used extensively in drilling and oil and gas pipeline applications. Demand will also be supported by a projected rebound in building construction expenditures. Increasing housing completions and strong interest in kitchen and bathroom renovation projects will boost demand for drain, waste and vent pipe, while growth in non-residential building construction will spur demand for conduit. These and other trends are presented in Plastic & Competitive Pipe , a new study from The Freedonia Group, Inc. According to analyst Matt Zielenski, “Steel accounted for the largest share of pipe demand by value in 2013 with 62 per cent of the total, supported by its use in the large oil and gas

The full 366-page study is available for purchase from The Freedonia Group.

The Freedonia Group, Inc – USA info@freedoniagroup.com www.freedoniagroup.com

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Tube Products International November 2014

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