Evraz NA and Welspun Arkansas to manufacture 75 percent of pipe for Keystone XL

Monday, 20 February 2012 00:31:44 (GMT+3)   |  

Calgary, Alberta-based TransCanada Corporation dispelled rumors Friday that most of the steel pipe for the Keystone XL pipeline expansion would not be manufactured in North America. Alex Pourbaix, TransCanada's president of Energy and Oil Pipelines, said that nearly 75 percent of the pipe to build Keystone XL in the US would come from North American mills.

TransCanada estimates that 821,000 tons of high strength line pipe will be used on the project in Canada and the US. Welspun in Little Rock, Arkansas will produce 332,800 tons of pipe (50 percent); Evraz's Regina, Saskatchewan, Canada mill will produce 156,266 tons (24 percent); ILVA in Italy will manufacture 103,147 tons (16 percent); and Welspun in India will contribute 69,457 tons (10 percent). Approximately 90 percent of all other goods necessary for the pipeline will be sourced from North American companies. TransCanada also estimates that it will use 660,000 tons of steel for the US portion of the Keystone XL pipeline.

There are also materials and equipment items containing steel that have not yet been contracted for, which would amount to approximately 35,000 tons of steel yet to be sourced. The major items are as follows: Houston lateral and Nebraska re-route--line pipe and associated materials such as fittings, valves; Cushing, Oklahoma and Baker, Montana Terminals--steel will be required for the construction of tanks, plus the steel required for the other materials related to the terminal such as tanks, piping and pumps; pump stations--pumps, motors and other related materials such as valves, fittings, etc. to be added at each location in the US. 

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