German steel pipe maker Europipe has been awarded a contract by Canadian firm TC Energy (TCE) to supply material for the Southeast Gateway Pipeline in the Gulf of Mexico, it announced on Friday September 16.
TCE is building the offshore gas pipeline in partnership with Mexican state-owned power utility company Comisión Federal de Electricidad (CFE).
The Southeast Gateway Pipeline will be a 715km-long offshore natural gas line and will cost an estimated $4.5 billion. It was scheduled to come onstream in mid-2025.
Europipe, based in Mülheim in Germany’s Ruhr steelmaking hub, will supply around half of the 36in diameter, thick-wall pipe the project will require. The parties supplying the remainder of the total volume were not disclosed.
Steel plate, the raw material for the pipe production, will be supplied by Europipe stakeholders Salzgitter Group and Dillinger Hüttenwerke.
Europipe subsidiary Mulheim Pipecoatings will be responsible for the external coating and internal lining of the pipes.
Europipe was also heard to be busy with EU-based projects. To a large extent, these were in response to the current energy crisis, with Germany intending to become less dependent on imports of Russian gas.
Such projects included new receiving terminals for liquid natural gas, onshore infrastructure, and new interconnectors.
A new LNG terminal was expected to be operating in Stade, Germany, by the end of 2023.
Published by: Elina Virchenko
