Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Italian pipes maker Tenaris plans to supply steel pipes for two big oil projects in Brazil and Mexico, the company announced this week.


In Brazil, Tenaris and Subsea 7 have signed an agreement wherein the former will supply pipes and coating services for the Bacalhau project located 185 km off the coast of São Paulo. 


Under the agreement, Tenaris will supply 75 km of seamless pipes for risers and flowlines that will be manufactured at Dalmine, Tenaris’s seamless pipe mill in Italy, the pipe producer said in a statement. The agreement also includes producing anticorrosive and thermal insulation coating for 151km of pipes to be developed at Confab, Tenaris’s production facility in Pindamonhangaba, Brazil.


In Mexico, Tenaris will supply coated tubes for the second phase of the Dos Bocas Refinery. However, the pipes maker did not disclose the volumes it plans to provide for this project. Tamsa, Tenaris’s seamless mill in Veracruz, Mexico, will produce the pipes for this project which is slated to be Mexico’s largest hydrocarbon processing plant. The refinery is being developed by Mexico’s state oil company Pemex Transformación Industrial.


The refinery is expected to be completed in 2023 and will consist of 17 operating process plants, power, and auxiliary services unit, cooling towers, and a section of water treatment plants with a capacity of around 340,000 barrels of crude per day, added.


Brazil’s crude steel output declined by 4.9pc to 30.9mn mt in 2020, from 32.5mn mt in 2019, while Mexican crude steel production decreased by 8.3pc to 16.8mn mt in 2020, from 18.3mn mt in 2019, according to the latest figures released by the World Steel Association.

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