Trans Mountain and EVRAZ North America have come to an agreement for the supply of approximately 250 000 t of pipe, equal to approximately 800 km of pipeline construction.
While the deal is contingent upon Kinder Morgan's final investment decision, if approved, it would see over 75% of the pipe that is needed for the Trans Mountain project coming from EVRAZ North America's Regina (Saskatchewan) plant.
The material for the pipe will be sourced from EVRAZ's recycled metal operations in Alberta, Saskatchewan, Manitoba and Ontario. The pipe will be manufactured by Canadian members of the United Steelworkers Union.
“It has been our commitment from day one to deliver benefits from this project to Canadians, and we are pleased to announce the single largest potential procurement contract to a Canadian plant and Canadian workers,” said Ian Anderson, President of Kinder Morgan Canada.
EVRAZ North America is the only producer of 100% made in Canada pipe and currently employs over one thousand workers at the Regina site where Canadian members of the United Steelworkers have produced over 63 000 km of pipe hat has been used in oil and gas pipelines since 1956.
“We look forward to working with Kinder Morgan on this project. Our collective expertise will make this one of the most technically advanced and environmentally safe pipelines in the world,” said Conrad Winkler, EVRAZ North America President and CEO.
The CAN$7.4 billion Trans Mountain expansion project is expected to result in direct and lasting economic benefits to Canada and communities along the pipeline corridor, including the equivalent of 15 000 jobs per year during construction.
Overall, the Conference Board of Canada estimates that the project will generate CAN$46.7 billion in government revenues and 802 000 person years of employment, the equivalent of 37 000 jobs per year during operations.
The remainder of the pipe that is needed for the project, as well as other procurement contracts, will be announced as project planning proceeds.
The next steps for the project include arranging acceptable financing and a final investment decision by Kinder Morgan. Construction is set to begin in autumn 2017, with an expected in-service date of late 2019.
Read the article online at: https://www.worldpipelines.com/project-news/03052017/evraz-north-america-and-trans-mountain-make-pipe-supply-agreement/