Sumitomo Metal Industries, Ltd. (Sumitomo Metals) and Sumitomo Corporation (SC) have announced the receipt of an order from International Petroleum Investment Company (IPIC), an enterprise wholly owned by the Abu Dhabi government, for the supply of large-diameter welded line pipes, which will be used to build an above-ground crude oil export pipeline.
The United Arab Emirates (UAE) plans to construct this pipeline within the scope of its national strategy to ensure stable crude oil exports. This will be the first pipeline to link the Habshan oilfield directly with Fujairah, a port city on the Gulf of Oman.
The pipeline will be 360 km long and will use 220,000 mt of pipes. The order for Sumitomo covers the supply of approximately 100,000 mt of large diameter welded line pipes to be laid for 190 km. The delivery is scheduled for end of July through end of December, 2008.
Commenting on the order, Sumitomo said that several large-scale crude oil and natural gas development projects are underway and therefore Sumitomo Metals and SC expect an increase in demand for large-diameter welded line pipes and OCTG, particularly in the Middle East. Sumitomo added that they plan to take part in these projects as well.