November, 17 2005
Indian steel ministry recommends reduction of duty on steel scrap
It is reported today that the Steel Ministry has forwarded a note to Central Board of Excise and Customs, seeking easing of duty on import of scraps used by secondary steel producers.
"We have recommended further easing of duty on scrap import. The ministry is of the view that the secondary steel maker suffered due to shortage of this crucial raw material," said J P Singh, joint secretary in Steel Ministry at a seminar.
TATA Steel and BlueScope Steel inaugurate JV site
TATA Steel and Australia's BlueScope Steel Wednesday held a dedication ceremony here for the proposed state of the art metallic coating and painting facility, to come up as part of their new JV. The new facility, expected to be operational by 2008, will have an annual metallic coating capacity of 250,000 tonnes and paint line capacity of 150,000 tonnes. The 50:50 JV agreements will be officially signed at a ceremony later this month
The joint venture company will build a new business across India and South Asia that will manufacture zinc and aluminium metallic coated steel, painted steel and roll formed steel products, and will deliver pre-engineered buildings and other building solutions
TATA Steel MD Mr B. Muthuraman said: "Tata Steel and BlueScope Steel share a similar approach to value creation in the steel business. Consumers would benefit from the range of solutions that will now be available to the buildings industry."
Indian Finance Minster sees 7.5% GDP growth
Eyeing a GDP growth of 7-7.5% this fiscal, as projected by the Reserve Bank of India RBI, Finance Minister Mr P Chidambaram declared that the Government would not hesitate to take fiscal steps, if necessary, to check inflation. Presenting an overview of the economy while inaugurating the annual Economic Editors' conference, Mr. Chidambaram said: "The RBI has projected 7-7.5% growth for the current year. We agree with the assessment and are optimistic of improving our growth performance over that of the previous year of 6.9%
Explaining why he was confident of a higher GDP growth, Mr. Chidambaram said the initial fears about a likely fall in farm output had been proved wrong. "This has put at rest all speculation about a setback to agriculture," he said, while noting that the other sectors such as industry and services had also exhibited buoyancy. However, "somewhat disappointing" had been the low growth electricity generation and mining, especially coal, owing to excessive rainfall this year, he said. Corrective steps are being initiated to step up mining and electricity generation," he said.
RINL out to secure raw materials to match expanded capacity
Rashtriya Ispat Nigam Limited RINL will tie up with either, Coal India or other mining partner to exploit a coking block it has acquired at Jharia in Jharkhand. It is reported that government has recently cleared the allocation of a reserve, with a proven capacity of 110 million tonne of coking coal
To further secure its coal needs, an RINL team is currently touring Australia and the US to explore joint venture opportunities to acquire coal mines.
RINL has already tied up with NMDC for iron ore
Earlier this year, RINL had announced expansion plans to double its capacity to 6.5 million tonne by 2008. It includes almost doubling production of saleable steel, hot metal and liquid steel. Four rolling mills are being set up, which include a roll and special bar mills. A 3,800-cubic meter blast furnace is also set to come up.
Tractoruls 45% layoff brings Mahindras acquisition closer
Tractorul Brasov unions have accepted yesterday companys restructuring proposals laid down by the Government, agreeing upon the lay off of 1,455 employees, meaning approximate 45% of the personnel, who will receive compensatory payments worth ROL 150 million each.
Officials of the Indian company Mahindra & Mahindra will talk today with representatives of the Authority for State Asset Resolution (AVAS) about the last details of the Tractorul Brasov privatization, according to Minister of State Mr Gheorghe Pogea. The future of the works depends on the finalization in due time of negotiations on the last details of this take-over.
Put up in the market four times over the past five years, the company now has its last chance to be privatized, as, according to the supplemental memorandum on economic and financial policies agreed with the IMF, procedures must be finalized by year end, otherwise the company will be wound up.
SICAL to focus on bulk logistics & hive off non core businesses
SICAL Ltd has decided to focus on bulk logistics and hive off non logistics business activities to one or more companies formed specifically for the purpose.
It has also announced plans to raise funds for the expansion plans of logistics division such as the new project for an Rs 5 billion iron ore terminal; and to restructure SICAL's existing debts & loans.
SICAL, South India Corporation (Agencies) Ltd is provider of integrated logistics services for bulk cargo in shipping and inland logistics includes port terminals; port handling; trucking and warehousing; ship chartering and agency; container freight stations; customs clearance; offshore supplies logistics; inland container depots.
Thai NSP cuts production of HRC due to price decline
Thai Nakornthai Strip Mill NSM has cut its production target to 800,000 tonnes of steel per year from 1.2 million tonnes due to tough market conditions, according to Chairman Mr Sawasdi Horrungruang. The company revised its target in light of a reversal in steel prices. Last year, its total output was 500,000 tonnes. So far, the situation is unpredictable but I think the steel market is in a downward trend,'' Mr Sawasdi said.
The price of steel sheet products has dropped sharply over the past year to US$450 a tonne currently from $600, resulting in NSM posting losses in the second and third quarters. However, the company expects to be in the black at end of this year. Mr Sawasdi said NSM would shift its focus to the custom-made market to avoid stiff competition in commodity products.
S Korea's steel output reduces in January September
South Korea's steel production fell slightly in the January-September period from a year ago due to reduced domestic demand, an industry association said Wednesday. Steel output slid 1.4% from a year ago to 46.0 million tons in the first nine months, according to the Korea Iron & Steel Association.
In contrast to the drop in output, steel imports rose 9.3% from a year earlier to 14.5 million tons in the nine month period, while exports grew 7.3 percent to 16.4 million tons. Domestic sales of steel fell an annual 4.2 percent to 35.1 millions tons. Steel inventories reached 2.3 million tons as of September, up 2.4% from the previous month and up 38.5% from a year ago, the association said
"The decline stemmed from top steelmaker POSCO's repairing of its production facilities and a rise in imports of low-priced Chinese steel products," an association official said.
Swiss Euro Finance looks to build mini steel mill in Kiev
Euro Finance, which controls several Ukrainian scrap metal collection companies, is planning to invest $300 million to build a steel mini mill in the Kiev region of Ukraine. The annual capacity of the new facility is expected to be 1million metric tons of steel.
According to a report in local daily, equipment to be installed at the facility will include an electric arc furnace, a stove-basket, a continuous casting plant, and a rolling mill. The company hopes to break ground on the project next year, with completion by 2008.
"The project of the mini plant is a natural movement towards vertical integration so that in the future, scrap metal recycling could earn fair money," says Mr Valentyn Makarenko VP of Euro Finance.
Euro Finance was founded in 2004 by Swiss Euro Steel Holdings and owns controlling stakes in the 6 scrap metal collection companies in Ukraine including CJSC Kyivvtormet, CJSC Vtorychni Resursy Kirovohrad, OJSC Ternopil VtorMet, OJSC AleksandriaVtorMet Kirovohrad, OJSC Zaporizhia Vtormet, and OJSC Vtormet Odessa
Steel slab prices up on world markets
It is reported that the steel slab prices have been rising recently on world markets except Asian countries where the price is low due to market oversupply. The main reason for the rise in the slab price is due to the increase price of American hot rolled coils. The increasing price of slab may support those raw materials such as iron ore and cook coke to rise as well.
In Latin America and CIS countries, the export prices for steel slab have risen by US$60 per metric ton from the middle of August to mid October. In October, the prices of steel slab were stable at about US$360 FOB.
Brazilian slab prices are reported to have finalized $400 CNF price for slab export to US for December, which is an increase of about $20 compared to October.
Sinosteel opens HR plate production line in Tianjin
The first phase of the Sinosteel (Tianjin) Steel Processing Base project has been completed and officially began operations with its 8mm to 26mm in 2,250mm width hot rolled steel plate production line. According to Sinosteel Corp this hot rolled steel plate is currently one of the largest in terms of dimensions and production capacity in the country.
The corporation also said that it has plans to build a 1.5mm-6mm2,000mm hot rolled steel plate production line with a processing capacity of 100,000 tons.
Sinosteel (Tianjin) Steel Processing Co Ltd is a JV established by Sinosteel Tianjin Company, Sinosteel International Ltd and Tianjin Storage & Shipping Co
Vitkovice steel profit surges in January-September
Vitkovice Steel showed a pre tax profit of CZK 2.19 billion at end September, up from nearly CZK 800 million in the same year ago period as per a company release. It is also said that the end December the profit could reach CZK 2.5 billion.
Revenues from sales of own products were up 22.4% on the year at CZK 11.424 billion. Value added increased in January-September by nearly 100% to CZK 2.953 billion.
Evrazholding of Russia gained control of Vitkovice Steel, with 99% shares bought from the state for CZK 7.05 billion. Evrazholding pledged to invest CZK 2.5 billion in Vitkovice Steel development, and a further CZK 800 million in the development of the region, supporting educational, health care and sports projects as well as creation of industrial zones.
Vitkovice Steel ranks among Europe's major heavy plate producers, and it is a dominant heavy plate maker in the Czech Republic
EU renews AD duty on steel cables from China, India, SA and Ukraine
Europe has imposed anti-dumping duties on imports of steel ropes and cables from China, India, South Africa and the Ukraine, extending those introduced in 1999.
The Official Journal of the European Union announced the renewal of the duties based on the threat of injury to domestic producers from low-cost imports from those countries and evidence that China and the Ukraine are transporting their cable and rope exports via third countries to circumvent existing safeguards. 'It is concluded that there are no compelling reasons against the maintenance of the current anti-dumping measures,' the notice in the Official Journal said
The anti dumping rates imposed range from 23.8-30.8% for India and 38.6 pct for South Africa to 51.8% for the Ukraine and 60.4% for the People's Republic of China.
Macarthur Coal MD dismisses sluggishness on PCI by analysts
Macarthur Coal MD Mr Ken Talbot used the annual meeting in Brisbane yesterday to join the propaganda war by dismissing analysts' speculation on the pricing outlook for the company's low volatile PCI coal as "too pessimistic". This was because use of PCI coal by steel makers outside Japan was rising as they moved to cut costs and lift blast furnace efficiency. Supplies of cheap coke from China at current prices of about $US130 a tonne was also "unsustainable" in his opinion.
Mr Talbot said leading steel makers such as Posco and Arcelor had told a recent industry conference in Paris they planned to boost low volatile PCI injection rates and slash consumption of higher priced coking coals confirming the product's value "in use" rather than by "energy content". "Arcelor concluded that a 20kg increase in PCI coal per tonne of hot metal could reduce total metallurgical coking coal trade by 8% and that is absolutely significant," he said.
Mr Talbot conceded that Japanese steel mills used lower PCI injection rates, had no immediate intention to increase consumption, and were in fact failing to perform to 100% of contracted tonnages in a bid to drive PCI and semi-soft coking coal prices down. "But we are in no hurry to settle," he said, emphasizing that the company would be "arguing its own case".
China's investment in construction up by 27%
China's main measure of investment in construction, factory equipment and other fixed assets rose to 27.2% in October from a year earlier, the government said. Fixed asset spending rose 27.6% YOY in the first 10 months of the year to 5.58 trillion yuan ($689 billion), the National Bureau of Statistics reported. The biggest share went to local projects, where investment rose 29.3% over a year earlier to 4.9 trillion yuan ($605 billion), it said.
Urban fixed asset investment is China's main benchmark for spending on property development, construction and capital goods and is viewed as an indicator for future growth. Authorities have sought to curb investment in some sectors, such as cement, steel and aluminum production, warning that excess spending on redundant construction projects and factory capacity could lead to financial problems. At the same time, they have encouraged investment in the energy sector to help meet shortages of electricity and coal.
The fastest growth in spending was in coal mining, up 76.3% YOY. Investment in electricity and other utilities rose 33%, spending on oil and natural gas exploration and development climbed 31% and investment in railways jumped 44% the report said.
European flat product prices forecast for 2006 by MEPS
Fourth quarter price rise announcements by European mills making flat rolled products has prevented prices falling further. Indeed they have achieved some small increase in per-tonne sales revenue. So far this quarter, the MEPS average flat product price has risen by around 8 per tonne almost 1.5%, which is less than steel mills expectations of 5%. It takes the average market price back only to where it was in July leaving it a long way below the peak of 602 per tonne that it reached in January 2005.
MEPS said that the dynamics of the market have not changed significantly. Consumption of strip products may have increased a little, as the domestic appliance sector is performing somewhat more strongly than in the first half of 2005. But the automotive industry is continuing to lag with its fourth quarter output forecast to be down by about 1% year-on-year.
Inventory stocks have certainly reduced but they were at such high levels after last years over production that the fall has not given the mills much additional momentum.
MEPS added that with a few exceptions, pressure from imports has lessened. Tonnages as a whole averaged about 1.2 million tonnes per month of flat products in the first half of this year, a sharp increase from less than 1 million tonnes in the same 2004 period. However all the indications are that imports have been declining since mid year. Weakness of the euro against the dollar is making imports more expensive.
Several EU producers say they will be looking for further price rises in the first quarter of next year. The only firm figure mentioned so far is a rather modest 20 per tonne. While market conditions are definitely improving, the mills are not likely to achieve even that small increase in full on January 1.
MEPS forecasts that average EU flat product price will edge slowly upward during the first quarter 2006. This would leave it at just below 500 per tonne in March. More gains should be available in period two if as is widely expected industrial and construction activity in the EU picks up.
Container plant to be built in Vietnam
Vietnam Shipbuilding Industry Corporation (Vinashin) has kicked off the first ever container plant in Vietnam. In the first phase of the project, Vinashin will build the plant, receive technology, and begin producing international standard steel containers for transport of dry goods.
With total investment capital of VND396bil, in the first phase, the plant will install a production chain with a designed capacity of 30,000 TEU per year. The first product is scheduled for release in 2006. In the second phase of the project, Vinashin will focus on producing containers serving the oil industry. During that time, the plants capacity will be raised to 100,000 TEU a year. In the third phase, Vinashin will produce cold containers and others suitable for the transport of liquids and cement powder
Mr Dao Van Binh, Director of Container Vinashin Company said that the corporation aims at 4.4 million tonnes by 2010. In order to reach that goal, the container fleet must have a further 40,000 TEU of tonnage to meet 25% of the demand for transport of import-export goods. By that time, the demand for container covers was estimated at 100,000-135,000 TEU, after Vinashin discovered that demand for container covers increases by 50-60% a year.
Ford Motor recalls 123,000 vehicles due to weaker steel component
Ford Motor Co has recalled 123,000 vehicles caused by the separation of fuel tank straps. The automaker discovered the problem during durability testing of a future model of the Five Hundred at very high mileage.
The company's investigation found that the strap's manufacturer changed to a weaker grade of steel in December 2004 that could not meet Ford's durability requirements. At mileage levels of 100,000 and more, the automaker was concerned the strap would separate and cause the fuel tank to drop.
Minmetals wants to invest more in overseas mines
Chinas state owned metals and trading firm Minmetals Corp is considering more overseas mine investments to help feed the country's strong demand for metal, a senior executive said Wednesday. Minmetals, whose biggest overseas project is in Chile where it is partnering with state owned Codelco in a mining and sales venture worth as much as US$2 billion, singled out Australia as a potential target.
We think we'll have better opportunities abroad because China's currently known deposits are relatively hard to develop," Mr Zhang Yuanrong, a Minmetals senior VP with its non-ferrous metals business, told reporters. Zhang declined to give specific investment figures, saying it "depended on the quality of the projects." In addition to iron ore, manganese, chromium and nickel, all used in making steel or stainless steel, Minmetals was looking at opportunities in alumina, copper and gold, Mr Zhang said.
Kryvorizhstal is the end of re-privatization in Ukraine
The President of Ukraine Mr Viktor Yushchenko assured the French investors, during a meeting at the Foreign Affairs Institute in Paris, that re privatization of Kryvorizhstal steel mills is the end of re-privatization in Ukraine according to a report in a local daily
I would like you to apprehend conclusion of the second Kryvorizhstal contest as the end of re privatization. Ukraine is building it economy on the free competition principles rather than oligarchic influence. The sale of Kryvorizhstal is the sign of that, stated Mr Yushchenko.
Jinan announces JV with Engro Corp for BF slag
Jinan Iron & Steel Co Ltd announced that it has executed a second JV agreement with Engro Corporation Limited to establish Jinan LuAng Materials Company Ltd in Jinan, capital city of Shandong Province in China. The JV has a registered share capital of RMB 70 million
The JV is principally engaged in the production of environment friendly cement for producing high performance concrete and proposes to use 1.2 million tons of ground granulated blast furnace Slag for cement making
POSCO sets offer price of $49.33 per share for Tokyo ADS
POSCO said that it has set an offer price of $49.33 each for the American Depositary Shares (ADS) it plans to list on the Tokyo Stock Exchange. It is the first ADS issuance on the TSE and will make POSCO the first South Korean company to trade on the Tokyo bourse.
POSCO earlier said it would sell 14 mln ADS each representing one-fourth of one share of its common stock. Trading in POSCO's ADS will begin on Nov 22.
China sets timetable for tackling small coal mine problems
The National Bureau of Production Safety Supervision and Administration has set a timetable for solving problems related to the country's hundreds and thousands of small coal mines, the Economic Information Daily reported. Mr Wang Xianzheng, deputy director of the administration, told a national meeting on coal science and technology, his administration aims to solve the small coal mine related problems within three years.
The registered legitimate small coal mines, which currently stand at 23,000 in China, will fall to 19,000, with the closing down of 4,000 of them at the end of this year, Wang said. These coal mines have a combined coal output capacity of 120 million tons, he added. The number of small coal mines will drop further after undergoing regrouping and mergers, he said.
Mr Wang also revealed that at present more than 10,000 small coal mines have been ordered to suspend production for improvement because of lack of safe production license applications.
In recent years, the Chinese government has issued a series of regulations and measures to improve coal mine safety. But the situation is still grave. Coal mine accidents occur one after another throughout the country. Official statistics said that in the January-September period of this year, 4,228 people were killed in 2,337 coal mine accidents. Up to Oct. 10, there were 43 major accidents nationwide. A major accident means more than 10 deaths at one time.
HK based CITIC Pacific to acquire 65% Of Shijiazaung steel mill
HK conglomerate CITIC Pacific Ltd has announced that, as a part of its strategy to expand its steel production capacity in China, it will acquire 80% of Shijiazhuang Steel Mill in Hebei province for CNY1.28 billion and will also subscribe to CNY196.4 million worth of new registered capital in the mill, giving it 65% ownership of the enlarged registered capital. The municipal government will hold 20% and the mill's management and workers will own the remainder.
Shijiazhuang has an annual production capacity of 2 million metric tons of special steel. CITIC Pacific said earlier its annual special steel production capacity would rise to more than 7 million metric tons once the deal is completed.
"Given this acquisition, the group will have access to markets in east, central and north China," CITIC Pacific said in a statement.
The blue chip conglomerate, whose business interests span aviation, power generation and property investment, said it will finance the acquisition from internal resources. CITIC Pacific has been building a portfolio of special steel production assets. In late August, it said it was making a general offer for the 41.9% stake it didn't already own in Shenzhen listed Daye Special Steel Co.
Megasteel delays bond sale on low steel prices
Malaysian Megasteel Sdn Bhd, a unit of Lion Corp Bhd, has postponed a $450 million high yield bond sale until January. It is the fourth overseas debt offering from Asia that has been delayed over the past month. Delaying the sale until after the steel company announces third quarter financial results will enable investors to assess its prospects
Investors said they were concerned about the impact of steel price fluctuations on the earnings of Malaysias largest integrated steel company.
Megasteel is exposed to more competition outside of Malaysia even though the domestic steel market is protected, Standard & Poors (S&P) said. Exports accounted for over a third of Megasteels revenue for the year ended June 30.
Judge adjourns requests from Stelco shareholders facing wipeout
Shareholders of Stelco Inc. were frustrated before an Ontario Superior Court judge Wednesday in their fight to stop the steelmaker from wiping out its current stock. Justice James Farley, who has been overseeing the Hamilton firm's bankruptcy protection for 22 months, admonished the shareholders for leaving their move until the last minute. He adjourned the group's request to question a former Stelco director and to submit sealed confidential information to the court.
Now that Stelco may finally be on the verge of exiting its restructuring process, investors are ramping up efforts to maximize their recoveries. On Tuesday, as creditors sat in a Mississauga, Ont., conference centre waiting to vote on Stelco's restructuring plan, the company suddenly postponed the vote until next Monday.
S Korean shipbuilders' profitability improves this year
Despite a fall in orders, South Korean shipbuilders' profitability improved this year as they focused on winning contracts for high value-added ships, an industry body said Wednesday.
Shipbuilders received orders amounting to 9.67 million compensated gross tons CGTs in the January-September period, down 19.3% from a year earlier, the Korea Shipbuilders' Association said. However, the value of the orders rose 7% from a year earlier, pointing to their focus on orders for high margin vessels, it said.
"The 7% gain means that the unit price of the orders jumped nearly 27% this year from a year ago," an association official said. Improved profitability is attributable to the shipbuilders' strategy of putting priority on taking highly profitable orders, the association said.
Local shipbuilders, which boast an order backlog of more than three years, have an upper hand in negotiations with buyers, enabling them to charge higher prices for large containers and liquefied natural gas carriers, it added.
But the association said several negative factors are in store for the shipbuilding industry, including rising steel prices. Steel plate prices and the won-dollar exchange rates should remain stable for their continuous growth in profitability, it said.
South Korea, which dominates the global shipbuilding market, has the world's top three shipbuilders Hyundai Heavy Industries Co, Daewoo Shipbuilding & Marine Engineering Co and Samsung Heavy Industries Co
Wuhan Steel plans to list warrants
Wuhan Iron & Steel Co, the third biggest Chinese steelmaker, is expected to trade 474 million call warrants and 474 million put warrants on the Shanghai Stock Exchange starting next Wednesday, according to a corporate filing.
Warrants are financial products traded on open exchanges, which gives investors the right to buy or sell a company's shares at fixed prices.
Wuhan Steel's call warrants will allow holders to purchase the steel maker's stock from its parent, Wuhan Iron & Steel Group Corp, at 2.90 yuan ($0.36) each.
China banned warrant trading due to excessive speculation in 1996. Wuhan Steel is the second company to list the product after Baoshan Iron & Steel Co did so in August.
National Coal Corp appoints Mr T. Michael Love as CFO
National Coal Corp, an Appalachian Region coal producer, announces that effective today, Mr T. Michael Love has been appointed to the position of Chief Financial Officer of National Coal Corp., replacing Mr Mark A. Oldham, who has left the company.
Mr Love has worked as a management consultant to several public companies, advising them on executive and financial management matters as well as disclosure and compliance issues.
"We welcome Mr Mike to the team and have every confidence that his capabilities will prove advantageous to our organization," said Mr Jon Nix, president, CEO and Chairman of the Board for National Coal.
Deutsche Bahn to buy BAX Global shipping division
The Brink's Co, known for its armored vehicle services announced that it has agreed to sell its BAX Global freight shipping division to German railroad Deutsche Bahn AG for $1.1 billion. The all cash deal will allow Richmond-based Brink's to concentrate on its security services. For years, the company has been narrowing its focus, starting with its exit from the coal business.
BAX Global, which is based in Irvine, Calif., ships heavyweight cargo internationally and provides transportation logistics. BAX Global's operating profit soared to $56.2 million last year from $3 million in 2003, while the unit's revenue rose 22% to $2.44 billion.
Government-owned Deutsche Bahn, which is preparing for its eventual privatization, said BAX Global is a good fit with the company's Schenker logistics unit. The acquisition will allow it to significantly expand its position in air and sea freight, while building its presence in North America and Asia.
China's Hunan Valin to issue up to 2 billion yuan in short-term debt
Hunan Valin Steel Tube & Wire Co Ltd announced its plans to issue up to two billion yuan in short term debt. The Shenzhen-listed company did not provide details on how the proceeds will be spent or when it will issue the debt.
Mittal Steel last month paid $338 million for a 36.67% stake in Hunan Valin Steel Tube & Wire
Delaware environmental department charges CitiSteel for pollution
The Delaware Department of Natural Resources and Environmental Control have charged CitiSteel USA with releasing metal dust. The citation followed a number of complaints by residents of the neighborhood where the mill is located. The steel mill was found to have released the metallic dust during tests held Oct. 1 and Nov. 4 of this year.
Enforcement officers from the DNREC have investigated several complaints from citizens about the dust from the plant settling on residences and automobiles. However, sample results from cars in the area found that the material was not hazardous in nature
EnCana ties up with Kinder Morgan and Sempra for Rockies Express
Kinder Morgan Energy Partners LP and Sempra Pipelines & Storage, a unit of Sempra Energy announced that EnCana Marketing, a subsidiary of EnCana Corporation US, has signed a binding precedent agreement for 500 million cubic feet per day of natural gas capacity on the proposed Rockies Express Pipeline. The agreement was signed in conjunction with an open season currently under way on the Rockies Express project.
The approximately 1,350 mile, 42 inch diameter, 2 billion cubic feet per day Rockies Express Pipeline will be the largest pipeline built in the United States in more than 20 years. The planned route of the pipeline originates at the Cheyenne Hub in Weld County, Colo., and extends to the Clarington Hub in eastern Ohio.
Kinder Morgan Energy Partners, L.P. is one of the largest publicly traded pipeline limited partnerships in America. KMP owns or operates more than 25,000 miles of pipelines and approximately 145 terminals.
Sempra Pipelines & Storage acquires, builds and operates natural gas pipelines and storage facilities in Mexico and the United States.
SA Wescoal confident of new coal deposits
SA Coal miner and trader Wescoal announced that it is confident of securing new coal deposits. Wescoal acquired the remaining 66% of Wesmine in mid-July and since then Wesmine's production has risen 75%. Wescoal has upgraded its existing coal-washing facilities and will be pursuing additional coal deposits.
Its turnover for the six months to September was hit by lower coal sales because of warm winter weather and because the strength of the rand compared with last year made it impossible to export. Revenue fell 10% to R98.3 million in the interim period compared with the corresponding period last year. Net profit rose to R3.9 million from R3.6 million previously as a result of a lower tax bill
Last year, the value of its exports was R18 million. But there were no seasonal effects in the second half of its financial year and management said it was confident it could achieve the profit forecasts in its prospectus.
SSGPL begins laying new gas pipeline in Pakistan
The Sui Southern Gas Company Limited (SSGCL) has begun laying a 42 inch diameter natural gas pipeline in Bin Qasim of Karachi, the largest-ever commissioned in the country. Mr Ahmad Waqar, secretary ministry of petroleum and natural resources, performed the groundbreaking ceremony of the pipeline project on Tuesday.
The project was being built at an estimated cost of Rs 800 million. The pipeline will be linked with the SSGCs main transmission and distribution network servicing Karachi, the main load centre, as well as the rest of Sindh and Balochistan. The project has entirely been designed by SSGC engineers and technical staff. The SSGC would set up an LPG storage and gas-air-mix facility in Gwadar and create a local distribution network to distribute piped gas to customers.
The MD of the SSGC Mr Munawar Baseer Ahmad said the 42-inch diameter pipeline was the largest diameter gas pipeline ever laid in the country and a tribute to the technical skill and expertise of the companys engineers. He said high quality steel was being used in the pipeline that conformed to API standard 5L, Grade X42 with three layers of PE coating.
