Sumitomo Metals and Nippon Steel Receive Steel Pipe Order from Canada

Sumitomo Metal Industry and Nippon Steel received the order of high-grade UOE steel pipe with large diameter at total 210,000 tonnes for Canadian oil shipment project. Sumitomo Metals accepted 130,000 tonnes and Nippon Steel 80,000 tonnes. The diameter of pipe is mainly 42 inches and the strength grade is X70. The firms will supply pipes through Sumitomo Corporation and Mitsui Corporation mainly in and after June 2006. Canadian steel pipe makers such as IPSCO usually accept orders of large diameter steel pipe for Canadian pipe lines for oil or gas shipment. Japanese steel makers have not accepted large lot orders from Canada for a while. The project is to construct a pipe line to transport oil from oil sand development region to Edmont oil factory in Alberta, Canada. Kinder Morgan, a pipe line management firm, coordinates the project. Oil sand is mined from relatively shallow deposit and melted by steam blown into deep sites of the deposit. Melted oil is pumped up to the ground and transported to the oil factory. Oil sand development advances in Canada thanks to improved profitable line with high crude oil price, though the production was suffering from high operating costs before.

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