Essar Steel has received two new orders from Middle East and Africa for manufacturing of API (American Petroleum Institute) grade steel pipes worth Rs400 crore.
The first order in Africa is for the construction of 4000 mt offshore line pipe application which will be used in a Chevron project. This is the second order that Essar has received from its Middle East client for supplying 45000 mt of 48 inch high grade coated pipes.
Dilip Oommen, MD & CEO, Essar Steel India said, “This is reflection of Essar Steel’s integrated capability to produce world class pipes. To cater to the wide range of pipe products manufactured through various routes, our pipe mill has full-fledged facilities for inspection and testing to ensure production of high quality pipes including sour service.”
Essar Steel’s pipe mill has the capability to manufacture 6,00,000 tonnes comprising 2,75,000mt per annum of API-grade HSAW (Helical Submerged Arc Welding) Line pipes.
API grades of steel pipes require a fine grain structure for maximum impact resistance – an important performance feature for line pipe applications, preventing any crack in the steel from propagating down the line. The company’s products has been accorded American Petroleum Institute (API) certification besides recent approvals from SHELL GLOBAL, ENI, SAIPEM, OCCIDENTAL-QATAR and ECOPETROL,PACIFIC RUBILAES in Columbia within the last ten months, paving its way to cement its position in the highly demanding oil and natural gas industry.
This takes the total order book of the pipe mill to approximately Rs1000 crore indicating strong order inflow for the company.
