Mexican pipe producer Tubacero will supply 750 kilometers (466 miles) of steel pipes to energy company Fermaca, which is building several pipelines in Mexico, including the La Laguna – Aguascalientes gas pipeline.
According to a media report, the Mexican tube producer has inked a contract with Fermaca to supply 750 km of pipes to the Mexican energy company at a cost of $330 million.
Fermaca said the deal with Tubacero could be one of the largest contracts within the oil and gas industry globally in 2016.
Mexican steelmaker AHMSA is said to be also involved in the deal by providing API 5L X70 steel.
Earlier this year, AHMSA told SteelOrbis it will provide 73,000 mt of plates to a gas pipeline project located in the county of Webb, Texas.
AHMSA said it will provide Tubacero, a Mexican steel pipe producer also involved in the project, X-70 grade steel plate from its Steckel rolling mill and tinplate produced at the steelmaker's hot rolling mill, the Mexican integrated steelmaker said.