$1.8-billion Tenaris mill in Bay City targets Permian operators

11/20/2017

HOUSTON – Tenaris recently opened a new $1.8-billion pipe manufacturing mill in Bay City, Texas, and with the new mill, it is targeting service for U.S. shale operators—in particular, those operating in the Permian basin—according to a local Houston newspaper.

The Houston Chronicle’s Fuel Fix publication has reported that the 1.2-MMft2 mill is now fully operational, and that it will provide work for 600 employees. The new facility will annually produce 600,000 tons of steel pipe for oilfield service work, including drill pipe, casing pipe and tubing pipe. The new mill was Tenaris’ first greenfield project in 60 years.

The company will use the facility to serve operators through its Rig Direct system, which synchronizes the production of pipe with customers’ drilling operations through the direct delivery of pipes, and services, according to the company. The mill in Bay City will serve as the hub of Tenaris’ industrial activity in the U.S.

In mid-October, the company produced its first seamless pipe at the Bay City mill, after testing the complete hot rolling process capabilities. The solid steel billet underwent the transformation from bar to pipe starting at the rotary furnance, passing through the piercer, and after going through other stages of production, the pipe made its way to the cooling bed. The production of the first pipe marked the last major milestone in the construction of the new seamless facility.

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