Supply to Dry Docks World Dubai for building reservoirs
Essar Steel has supplied 9,000 tonnes of high quality steel plates to Dry Docks World Dubai for setting up a sub-sea oil and gas storage tank. The project is being executed in the North Sea by the Dubai-based company for Premier Oil, UK.
The steel plates will be used for building reservoirs in the sea bed at a depth of 130 metres at low temperatures. Essar Steel is among the few companies that can produce high quality steel plates designed to withstand harsh conditions and are maintenance-free with a life of over 50 years.
Ravi Singh, Senior Vice-President, said the opportunity for steel manufacturers in the oil and gas sector is huge, but needs high expertise to tap this sector.
“The steel supply to the oil and gas sector fetches a good premium. The competition is limited as there are few players who can produce this high quality steel,” he added.
Opportunities will also open up in the domestic hydro carbon sector as the oil and gas sector is slowly moving to deep sea exploration. It is not only cost effective to store oil and gas in deep sea storage tanks, but there is no need to acquire land and set up other infrastructure, he said.
In the last six months, India imported 165,000 tonnes of similar grade steel for different applications. They are largely exported after converting them into pipes, said Singh.
Conforming to the highest global standard, it has been tested for hydrogen-induced cracks to ensure the ductility and impact resistance.
With growing competition and slowing demand for conventional sectors, steel companies are focusing on high value quality products to make their presence felt and boost their profitability.
Essar Steel plate mill in Hazira, Gujarat, has an annual capacity of 1.5 million tonnes capable of producing up to five-metre wide plates.
The availability of full-fledged port near its plant in Hazira makes it easier for Essar to export steel plates which are import-substitutes, said Singh.