Julong Steel Pipe to Supply 37,000T of Large Pipe for Fujian LNG Pipeline

Julong Steel Pipe, which is large diameter pipe joint venture of China National Petroleum Corporation (CNPC) and Marubeni-Itochu Steel, got 37,000 tonnes of order for JCO process shaped large diameter welded steel pipe from Chinese pipeline project of Fujian LNG. The firm will finish the delivery in the year. Julong Steel Pipe procures the plate materials from Chinese steel makers for itself after the firm purchased plate for the first time to make pipe for Guandong LNG project, for which the firm got order in 2004, though CNPC provided plate materials for Julong Steel Pipe. Julong Steel Pipe, in which Chinese local firms have interests with CNPC and Marubeni-Itochu Steel, produces JCO shaping processed straight seam welded large diameter pipe. The firm produces mainly product with 40 inches of diameter and can make products with 16-56 inches at the plant with annual 150,000 tonnes of output capacity. The firm started to make money for the second year of 2003 with 87,000 tonnes of output after the plant started operation in July 2002 and produced 61,000 tonnes in 2002. China has many natural gas pipeline projects increasing demand for large diameter pipe every year. Julong Steel Pipe increased the output to around 110,000 tonnes in 2004 and 2005 and improved the profitability. Fujian LNG pipeline project is to transport LNG to consuming areas in Fujian from Indonesia after gasification. The project uses 45,000 tonnes of 28-32 inches diameter of pipe with X65 strength in American Petroleum Institute standard.