Secure steel supplies in periods of high demand

The current high demand and increasing prices characterising the world steel market are well documented. The price of oil (up by over 35% in 2006), the demand for energy resources, low levels of steel products in stock (lowest level for over seven years), rising input costs (Zinc up 80% and Scrap up 40% in 2006) and the vast appetite of China and other developing nations (economic growth still surging at 6% p.a.) are all leading to longer lead times for steel products.

Volatility of this nature is problematic for oil and gas companies trying to develop and commercialise their energy resources. As lead times for key steel items such as linepipe extend further, so does the date for achieving returns on investments. In market conditions such as these, working with a major steel supplier such as Corus can pay dividends.

Corus employs around 50,000 people with the capacity to produce 21 million tonnes of steel a year. Corus is an Anglo-Dutch company structured with specialist manufacturing divisions focussing on target products, complemented by an International division - with a worldwide network of offices - offering a supply chain management service and extended sourcing capability from our world-class manufacturing partners

Corus has a long and distinguished history serving the energy industry. From exploration and drilling through to refining, processing and distribution, Corus specialises in providing a supply chain management service that supports our customers throughout the project. This understanding of the entire energy project process makes Corus the ideal partner for securing steel supplies during these volatile times.

Corus’ pipe mills specialise in projects at the leading edge of pipeline technology, manufacturing one million tonnes of pipe per year. Located in a centre of pipe-making excellence in the North East of England, Corus have 3 pipe mills offering High Frequency Induction Welded pipe up to 20”/508mm diameter, UOE submerged arc welded pipe up to 42”/1067mm and 3 roll bend submerged arc welded pipe up to 84” / 2134mm.

The 42” SAW mill operates the strongest set of presses in a mill of its type making it particularly suited to the increasing demands of the energy industry. Through extensive development and investment, the mill manufactures pipe with excellent dimensional tolerances on pipe diameter, wall thickness and ovality. These tight tolerances offer the lay-contractor the best possible fit-up and welding speeds, thus significantly reducing lay times and project costs. By working closely with key clients from the early stages of major projects, Corus has been able to reduce steel linepipe lead times, phase deliveries to meet the specific needs of a project and provide additional flexibility on pipe dimensions to give customers more time to optimise their pipeline design requirements. Enhanced pipe collapse resistance also supports the industry as it ventures into ever deeper waters.

In response to the needs of contractors and operators, we have developed a wide range of strategic alliances with world-class mills and local partners around the world to extend our offering. These relationships give us the capacity to build flexible multi-product packages according to the project requirements and can include combinations of the following: Plate, Sections, Structural Tubulars, Tubes & Pipes, Flanges, Fittings, Elbows, Tees, Reducers, Valves, Cans, Fabricated Components, Gratings, Handrails, Coated Steels and Bar. This sourcing capability is a key factor in offering an even stronger solution that our teams can manage into consolidated deliveries. Vitally, our subcontracted production retains the Corus guarantee to give our customers total peace of mind. We can offer this, because our third-party suppliers are assessed, approved and closely monitored to ensure their compliance with contract requirements and specifications.

Our project teams have extensive experience of all aspects of project management from production progressing through to documentation and customs formalities. Expert logistic teams handle complex supply-chain issues, including consolidation of materials from multiple sources and ensuring that goods arrive on time, in full, at the chosen destination around the world. Furthermore, expertise in export finance, project finance, transactions in foreign currencies and other financial services all generate further innovative solutions for Corus’ customers.

Corus’ ability to work with clients and solve project complications has equipped us to win complex contracts around the world with many notable achievements including:

• 100km of 610mm x 32mm sour service linepipe to Gazproms’ Bluestream project – the deepest pipeline laid at that time
• 112.5km of 56” SAW linepipe for the IGAT V lines in Iran
• 265km of 32” linepipe to the Offshore Gas Gathering System (OGGS) in Nigeria
• 6,300 tonnes of 2” – 20” seamless OCTG for Waha’s ongoing requirements in Libya
• 80km of 385mm ID pipe for Statoil’s first ever sub-sea HFI Pipeline in the North Sea
• 1,700 tonnes of Process Pipe for Train Six of the Bonny Island development in Nigeria
• 12,500 tonnes of Sections, Plate and Structural Tubes for the TPG500 Shah Deniz project in Azerbaijan
• 350km of 457mm x up to 27mm for the Shell / Williams Perdido Norte project in the Gulf of Mexico which at 2,700 metres will be the deepest pipeline laid anywhere in the world, when installed.

Building upon these achievements and previous project successes in the Russian / CIS region, such as Kashagan, Sakhalin and Bluestream, Corus is seeking to be further involved in the full field development of Kashagan and in major offshore pipeline projects in the Baltic (North European Gas Pipeline) and Barents (Shtockman) seas. These projects will require large quantities of high quality steel products and the type of support that Corus excels in.

Russia and the CIS countries offer many exciting opportunities for Corus to work with local and international companies in the development of a region packed with possibilities. To support these activities and promote our commitment to the markets, we have opened a Moscow office and are planning a local presence in Kazakhstan to bring the benefits of our experience to the projects within this key region.

For all enquiries, please email us at: CorusEnergy@CorusGroup.com