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Japan: Nippon Steel, Sumitomo bag high-alloy seamless pipes order for CCS project in Qatar

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BigMint Bureau

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17 Jun 2024, 16:41 IST

Japan: Nippon Steel, Sumitomo bag high-alloy seamless pipes order for CCS project in Qatar

Nippon Steel Corporation and Sumitomo Corporation have secured a significant order for high-alloy seamless OCTG (Oil Country Tubular Goods) pipes for a carbon capture and storage (CCS) project in Qatar. This marks a major development for both companies as they expand their offerings in the decarbonization sector.

The order, placed by QatarEnergy, a state-owned resource company, is for approximately 1,000 tonnes (t) of OCTG pipes. These pipes will be used in Ammonia7, one of the world's largest blue ammonia production facilities currently under construction in Mesaied, Qatar. Blue ammonia is produced using CCS technology to capture and store CO2 emissions during the production process.

This project represents the first time a Japanese company has received an order for OCTG pipes specifically for a CCS project in the Middle East. Nippon Steel has already begun shipping the OCTG pipes, manufactured at their Kansai Works in Wakayama, Japan. Deliveries are expected to be completed by October 2024.

Nippon Steel is a world leader in the production of high-alloy seamless OCTG pipes, a technology requiring advanced capabilities to ensure corrosion resistance, strength, and hardness. Their expertise, combined with Sumitomo Corporation's extensive experience in the OCTG business and strong presence in Qatar for over 30 years, positions them favourably for this project.

Sumitomo Corporation played a key role in securing this order, handling planning, customer negotiations, transportation arrangements, and after-sales services. Their involvement encompasses the entire supply chain for this project, excluding OCTG pipe manufacturing.

This large-scale order for CCS applications is expected to be a significant driver for future demand of OCTG pipes in the decarbonization sector, marking a positive step forward for both Nippon Steel and Sumitomo Corporation.

Note: This article has been written in accordance with a content exchange agreement between Japan Metal Daily and BigMint.