South Korea’s SeAH Steel Holdings Corp. said on Tuesday it has signed a five-year contract to provide 200,000 tons of steel pipes to Abu Dhabi National Oil Company (ADNOC).
The supplies are American Petroleum Institute (API) pipes and clad pipes, which are widely used for transporting oil and gas. The Korean steel conglomerate didn’t disclose the deal value.
SeAH’s UAE affiliate will provide the API pipes, which will be used to move crude oil and natural gas containing hydrogen sulfide. SeAH Steel UAE LLC, the affiliate, has supplied various types of pipes to ADNOC since 2011.
Inox Tech S.p.A, SeAH’s Italian affiliate, will start providing 14,000 tons of clad pipes to the Middle East energy firm in the first half of next year. The pipes, combined with corrosion-resistant alloy steel and carbon steel, will be used for ADNOC’s Hail & Ghasha gas project.
The clad pipes are cost-competitive while maintaining strength comparable to conventional alloy steel, SeAH said.
SeAH is expanding its presence in the Middle East. In August last year, it joined hands with Saudi Aramco to establish a joint venture to build a seamless stainless steel pipe plant.
The JV, SeAH Gulf Special Steel Industries (SGSI), broke ground on the $230 million plant in King Salman Energy Park of Saudi Arabia in February of this year.
