OTC 2012: Tata Steel wins Keathley Canyon linepipe order

Offshore staff

HOUSTON – Tata Steel has won its second major steel linepipe contract in recent weeks for a deepwater project in the US Gulf of Mexico.

The company will supply 214 mi (345 km) of 20-in. diameter submerged arc welded linepipe for Discovery's Keathley Canyon Connector, which will have capacity to transport more than 400 MMcf/d of gas from the Keathley Canyon, Walker Ridge and Green Canyon areas.

Tata Steel will manufacture more than 110,000 metric tons (121,254 tons) of pipe for the project at its 42-in. mill in Hartlepool, northeast England, with delivery scheduled for later this year. The pipe will be installed in water depths of up to 2,250 m (7,380 ft).

This is the company's second contract for the Keathley Canyon development. A factor in the company’s favor, according to Tata Steel’s Richard Broughton, was the mill’s combined crimp and ‘O’ press ombination, which ensures a high level of dimensional tolerance control, therefore providing enhanced deepwater anti-collapse properties. The tighter tolerances achieved also lead to faster fit-up and lay rates.

Last month, the company secured another contract to supply 48,000 metric tons (52,910 tons) of pipe for the Lucius project oil pipeline.

The volumes being supplied are fairly typical for Gulf of Mexico projects, Broughton said. Over the remainder of this year, the company will bid for numerous other upcoming major projects, which Broughton hopes will lead to a strong order book in the second half of 2013.

The company continues to invest in improvements at the Hartlepool facility, notably in additional welding and cutting capability, and more tailored solutions for the offshore sector, such as such as fabricated spools and risers.

Some of the major pipelay projects are offshore northern and Western Australia, where there is a growing trend to favor cladded steel over carbon steel linepipe to withstand sour service. Tata Steel has its own cladded process under development, Broughton said.

5/02/2012

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