Nippon Steel Corporation (Nippon Steel) ,together with Sumitomo Corporation, has renewed a long- term contract with the Norwegian energy company Aker BP ASA (Aker BP) for the supply of OCTG for a maximum period of 2034. 
Aker BP, established in 2016, is one of the largest independent energy companies in Europe with the largest production volume and is engaged in oil and gas exploration, development and production of oil and gas fields on the Norwegian continental shelf. Since the establishment of Aker BP, Nippon Steel Corporation has been supplying OCTG used for oil and gas development through Sumitomo Corporation. The renewal of the contract is attributed to the high evaluation of Sumitomo Corporation and Nippon Steel's stable supply of high-performance OCTG, product development tailored to customer needs, and total solutions through supply chain management. 
Through the renewal of the long-term supply contract with Aker BP, Nippon Steel will further expand its strategic partnership with Aker BP and its group companies and will also consider supplying steel 
products in the areas of decarbonization, hydrogen and ammonia business. 
Nippon Steel and Sumitomo Corporation will contribute through the stable supply of OCTG to securing energy security in the face of rising geopolitical risks and to the realization of a decarbonized society.

Long-term OCTG supply contract with Aker BP renewed -Strengthen strategic partnership through stable supply of OCTG-

Nippon Steel Corporation (Nippon Steel), together with Sumitomo Corporation, has renewed a long-term contract with Equinor ASA (Equinor) for the supply of OCTG to be used in Norway and international for a maximum period of 9 years. 
Over the past 35 years, Nippon Steel, together with Sumitomo Corporation, has been supplying OCTG to Equinor for use in oil and gas development and CCS(*) projects, which contribute to the reduction of greenhouse gas emissions. The renewal of the contract is in recognition of the stable supply of high-performance OCTG supplied by Nippon Steel and Sumitomo Corporation, product development tailored to customer needs, reliable just-in-time delivery services, and steady commitment to low carbon, safety and human rights compliance throughout our supply chain. 
(*) Carbon Capture and Storage. Technology to capture CO2 emitted mainly from power plants and factories, and then inject and store it underground. 
As one of the largest energy companies in Europe, playing a key role in the in Europe's energy security and decarbonization. In addition to its natural gas business, Equinor focuses on decarbonization projects such as CCS, hydrogen and ammonia, and wind power generation. 
Through the stable supply of OCTG, Nippon Steel and Sumitomo Corporation will further expand its long-term collaboration with Equinor in the energy sector.

Long-term OCTG supply contract with Equinor renewed – Strengthens strategic partnership through stable supply of OCTG–

Nippon Steel Corporation (“Nippon Steel”), in a joint endeavor with Sumitomo Corporation, has received orders for high-alloy seamless OCTG that it manufactures for a CCS(Note 1) project intended for a project to construct blue ammonia(Note 2) manufacturing plant (common name: Ammonia 7) that QatarEnergy (Head Office: State of Qatar), an Energy company operated by the State of Qatar, will lead in Qatar’s Mesaieed Region. Nippon Steel recently conducted the shipment of the first articles in those orders. In this project, “NSCarbolex™ Neutral,”(Note 3) a form of green steel applying the mass balance approach(Note 4) (“green steel”) offered by Nippon Steel, will be employed. 
This project constitutes the first receipt of orders for high-alloy seamless OCTG and NSCarbolex™ Neutral, for a large-scale CCS project in the Middle Eastern region. 
Qatar boasts significant natural gas reserves and, in terms of LNG export volume, produces roughly one-third of all of the world’s natural gas. The state is also engaging in ammonia manufacturing and CCS projects for decarbonization purposes while supplying natural gas as a form of transition energy. In the blue ammonia manufacturing plant construction project being implemented by Qatar Energy, CO2 will be separated from methane gas emitted from the Mesaieed Region, one of Qatar’s leading industrial zones, and stored underground, after which it will be used to produce ammonia. The plant will be one of the world’s largest ammonia manufacturing plants with an annual production capacity of 1.2 million tons. 
CO2 that is injected underground mixes with various forms of impurities. This causes corrosion in OCTG to elevate. High-alloy OCTG by Nippon Steel have shown superior corrosive resistance in what had been extreme petroleum and gas development environments. In recent years, these pipes have been employed not only in conventional oil and gas fields but also in CCS and other decarbonization and new energy sectors in other regions. 
As part of its initiatives to achieve carbon neutrality by 2050, Nippon Steel will continue to provide two types of value in the form of NSCarbolex Neutral, a steel product with assigned CO2 emission reduction volumes in steel manufacturing processes, and NSCarbolex Solution(Note 5), a highly functional product and solution technology that contributes to CO2 emission reduction in society. Through this provision, Nippon Steel will continue to make its contribution to promoting its customers’ decarbonization, enhancing their competitiveness, and, by extension, achieving a carbon-neutral society. 
(Note 1) CCS 
Abbreviation for Carbon dioxide Capture and Storage. The act of capturing and storing CO2 emitted in industrial activities. 
(Note 2) Blue ammonia 
Carbon-neutral ammonia that utilizes captured CO2 generated in ammonia manufacturing processes. 
(Note 3) NSCarbolex Neutral 
A steel product that utilizes the mass-balance approach to assign CO2 emission reduction volumes in steel manufacturing processes. <a href="https://www.nipponsteel.com/en/product/nscarbolex/neutral/" target="_self">https://www.nipponsteel.com/en/product/nscarbolex/neutral/</a>

 
<img alt="NSCN QRコード" data-entity-type="file" data-entity-uuid="0f31a3ce-fe4d-4cfc-beef-a2b7528d6e03" src="https://bo.tubular.nipponsteel.com/sites/default/files/inline-images/20240614_100_01_0.jpg" class="align-center" width="651" height="106" loading="lazy" /> 

(Note 4) Green steel applying mass balance approach 
Incremental reductions of greenhouse gas (GHG) emissions achieved through projects with additionality implemented by steel manufacturing companies is pooled in the organization, and thereafter steel products are supplied with certificates, in accordance with the guideline established by the Japan Iron and Steel Federation (JISF). Customers who purchase green steels that applies mass balance approach can report the reduction from GHG protocol Scope 3 emissions. 
Ref.The guideline established by the Japan Iron and Steel Federation (JISF). <a href="https://www.jisf.or.jp/en/activity/climate/index.html" target="_blank">https://www.jisf.or.jp/en/activity/climate/index.html</a> 
(Note 5) NSCarbolex Solution 
Highly functional product and solutions technology that contributes to the reduction of CO2 emission in society. <a href="https://www.nipponsteel.com/en/product/nscarbolex/solution/" target="_self">https://www.nipponsteel.com/en/product/nscarbolex/solution/</a>

 
<img alt="NSCS QRコード" data-entity-type="file" data-entity-uuid="bbea351b-ec56-4c26-a587-7c67dad018dc" src="https://bo.tubular.nipponsteel.com/sites/default/files/inline-images/20240614_100_02.jpg" class="align-center" width="656" height="118" loading="lazy" /> 
<img alt="パイプ写真" data-entity-type="file" data-entity-uuid="4c3dc235-efa5-4c56-ae95-b313c86b5e9c" src="https://bo.tubular.nipponsteel.com/sites/default/files/inline-images/20240614_100_03.jpg" class="align-center" width="436" height="305" loading="lazy" /> 

High-alloy seamless oil well pipes by Nippon Steel contain superior corrosion resistance.
<img alt="MAP" data-entity-type="file" data-entity-uuid="aecfce4f-8b16-4b33-9184-6a139ac186bc" src="https://bo.tubular.nipponsteel.com/sites/default/files/inline-images/20240614_100_04.jpg" class="align-center" width="392" height="500" loading="lazy" /> 

Region where the construction project for the blue ammonia manufacturing plant to be built by QatarEnergy and the accompanying CCS project will be implemented.

Acceptance of Orders for High-Alloy Seamless OCTG and Employment of Green Steel “NSCarbolex Neutral” Finalized for CCS to Be Used in Construction Project for Blue Ammonia Manufacturing Plant in the State of Qatar

Nippon Steel Corporation ("Nippon Steel") will participate in OTC (Offshore Technology Conference), scheduled to be held in Houston in the U.S. between May 6 (Mon.) and May 9 (Thur.). 
OTC is an exhibition where offshore-related companies and organizations gather from all around the world. It brings over 1,300 exhibiting companies and welcomes about 30,000 attendees each year. 
At this year's exhibitions, Nippon Steel will feature high-performance products such as high-end OCTG that can be used in high CO2 concentration environments, such as CCS*1, which is expected to be a major step toward achieving carbon neutrality; HYDREXEL™ (HRX19™), a stainless steel product for handling high-pressure hydrogen with advanced resistance to hydrogen embrittlement, which is required for commercial hydrogen stations for the hydrogen economy; and HTUFF™, a thick steel plate with enhanced HAZ toughness*2, which is used for offshore wind power generation equipment mounts and offshore structures. As the need for solutions for climate change increases worldwide, we will introduce our customers to energy-related products that are expected to serve as solutions for promoting decarbonization. 
Taking advantage of this exhibition event, Nippon Steel will broadly contribute to achieving a carbon neutral society in the areas of technological development and product offerings by responding to the needs for decarbonization of energy companies around the world, aiming for the goals of Nippon Steel's "Carbon Neutral Vision 2050." 
The Nippon Steel Group will continue to pursue the world's best technology and manufacturing capabilities, and contribute to improving society through activities that conform to the Sustainable Development Goals (SDGs) adopted by the United Nations, with a focus on “Affordable and Clean Energy” and “Climate Action.” 
*1: What is CCS (Carbon dioxide Capture and Storage)? 
Carbon dioxide capture and storage technology that collects CO2 emitted from power plants, chemical plants, etc. after isolating it from other gases and then stores and injects it deep underground. 
*2: What is HAZ toughness? 
The toughness of parts where the metallographic structure changes due to thermal effects during welding.
<img alt="OTC 様子" data-entity-type="file" data-entity-uuid="60c29981-327f-45aa-8ecf-0795af3aca12" src="https://bo.tubular.nipponsteel.com/sites/default/files/inline-images/20240423_100.jpg" class="align-center" width="526" height="408" loading="lazy" /> 

▼ For the details on HYDREXEL (HRX19), a stainless steel product for handling high-pressure hydrogen, please see below. <a href="https://www.nipponsteel.com/product/catalog_download/pdf/P106en.pdf" target="_blank">https://www.nipponsteel.com/product/catalog_download/pdf/P106en.pdf</a> 
▼ For the details on HTUFF, a thick steel plate with enhanced HAZ toughness, please see below. <a href="https://www.nipponsteel.com/product/catalog_download/pdf/A003en.pdf" target="_blank">https://www.nipponsteel.com/product/catalog_download/pdf/A003en.pdf</a> 
▼ For the details on OTC, please see below. <a href="https://2024.otcnet.org/" target="_blank">https://2024.otcnet.org/</a>

News

Latest updates on Nippon Steel Tubular products

Jul. 10, 2024

Long-term OCTG supply contract with Aker BP renewed -Strengthen strategic partnership through stable supply of OCTG-

Jul. 03, 2024

Long-term OCTG supply contract with Equinor renewed – Strengthens strategic partnership through stable supply of OCTG–

Jun. 14, 2024

Acceptance of Orders for High-Alloy Seamless OCTG and Employment of Green Steel “NSCarbolex Neutral” Finalized for CCS to Be Used in Construction Project for Blue Ammonia Manufacturing Plant in the State of Qatar

Apr. 23, 2024

Participation in OTC, an Energy-Related Exhibition in the U.S.