The goods will be made at the company’s spiral welded line pipe mill in Gemlik, Turkey, the company said in a statement to American Metal Market on Thursday February 15.
The 400-plus-mile pipeline will convey natural gas from the Permian Basin to the Corpus Christi, Texas, area. One of the project’s joint-venture partners, Kinder Morgan, has said the pipeline will use mostly 42-inch-diameter line pipe and some 36-inch pipe. The link is scheduled to go into service in October 2019.
Borusan, based in Turkey, confirmed that it beat other US domestic and foreign bidders for its contract to supply nearly half of the pipe. The company acknowledged that there had been complaints from domestic suppliers but said it is confident the award will be upheld.
“Borusan’s extraordinary technical and operational performance in the prestigious pipeline projects previously executed in the US is the primary reason [for] this award,” the statement said.
“We are aware that domestic US line pipe mills filed trade actions claiming that Borusan’s line pipe sales to the United States are dumped and benefit from government subsidies,” the company said. “Similar anti-dumping allegations were lodged against Borusan in 2015 with respect to oil country tubular products and were found groundless by the US Department of Commerce. We expect that these new allegations will similarly be rejected by the US authorities after investigation.”
During his first week in office, President Donald Trump issued an executive memorandum calling for all new and refurbished US pipelines to use American-made steel from the melt stage through coating. The pledge was a nod to one of Trump’s key constituencies during his campaign. But another base of his support was the oil-and-gas industry, and the energy sector did not want to be limited to domestic line pipe. By last summer, the Buy America plan seemed to have been dropped.