SeAH Steel, POSCO Develop X80 Grade Welded Pipe

South Korean largest welded steel pipe maker, SeAH Steel will developed American Petroleum Institute (API) standard high strength grade, X80 electric resistant welded line pipe with POSCO. SeAH Steel will start the production at the main base of Pohang plant in November 2006 to ship around 300 tonnes to USA for gas drilling casing tube in oil country tubular goods application. The firm got order for X80 grade pipe for the first time as South Korean maker though the firm has shipped X70 grade in many cases. The firm tries to get order from oil majors for natural gas pipe line. SeAH Steel has 4 plants including Pohang plant, at which the firm makes carbon steel pipe products, in South Korea and 2 plants in Vietnam. The firm, which can produce welded pipe up to 24 inches of outer diameter and 25 millimeters of thick for line pipe, produces around 250,000 tonnes per year of line pipe. The firm ships 70% of the line pipe for natural gas with 30% shipment for oil field. The firm developed X80 grade, which is the most high strength grade in API standard. With order from US oil company, the firm tried to develop the grade since spring 2006 with POSCO, which provides high grade sheet steel. The firm succeeded the development starting mass production. SeAH Steel and POSCO can produce the high grade products with existing facilities. Many natural gas pipe line projects are underway in the world when the environmental friendly clean energy demand is expanding. Especially UOE shaped large diameter steel pipe supply is tight with limited suppliers. South Korea has no UOE pipe maker and the country had trouble to get order for pipe for pipe line. However, with development of X80 grade welded pipe by SeAH Steel, the country can have better chance for the order and makes stride for better pipe making technology.