PV Pipe to produce steel oil pipes next year

October 18, 2012 | 08:10

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PetroVietnam Steel Pipe Joint Stock Company (PV Pipe) is test-running a plant producing steel oil pipes which will turn out products early next year with a capacity of 100,000 tons per year.

Representatives of PV Pipe, Steel Flower Co. and Busan City sign a memorandum of understanding last Thursday

PV Pipe director Tran Dang Thuyet said that the plant worth nearly VND2.2 trillion, or roughly $104 million, was kicked off last October in the Mekong Delta province of Tien Giang.

Steel pipes produced by the plant will be used for gas pipeline projects such as Nam Con Son 2 and Block B-O Mon. Besides, the plant will provide steel pipes for oil rigs, refineries, other oil and gas projects, and thermal power plants.

According to PV Pipe, the firm last Thursday signed a memorandum of understanding with South Korea-based Steel Flower Co. (SFC). Under the deal, the South Korean firm will share some outsourcing orders and supply products if PV Pipe fails to meet orders, and vice versa.

PV Pipe is a member of PetroVietnam Gas Corporation.

SGT

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