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October 16, 2006

    

ERW Line Pipe supply for Australian onland gas pipeline project
- X-70 ERW Pipe for Australia -

 

JFE Steel Corporation, having its registered office at 2-3, Uchisaiwai-cho 2-chome, Chiyoda-ku, Tokyo, Japan and Metal One Corporation, having its registered office at 3-23-1 Shiba, Minato-ku, Tokyo, Japan, are pleased to announce their appointment as the sole supplier of line pipe for the Dampier to Bunbury Pipeline Expansion Project (DBNGP) Stage 5A Expansion Project.

Under the contract, JFE Steel Corporation and Metal One will supply approx. 82,000MT (including an optional 20,000MT) in total, of 26" OD API 5L X-70 Line Pipe to DBNGP (WA) Nominees Pty Ltd. Supply of the line pipe will commence from October-November 2006.

The DBNGP is a 1600 km pipeline transferring natural gas from Dampier in the North West of Western Australia to Bunbury in the South West of the state. The DBNGP is ultimately owned by a consortium, comprising Alinta (20%), Alcoa (20%) and DUET (60%).

Growing demand for gas in the South West of Western Australia has resulted in a requirement for significant expansion of the DBNGP.

The Stage 5A expansion includes more than 570km of pipeline looping at a total construction cost of approximately 700 million Australian dollars. In 2005, JFE Steel and Metal One supplied 30,000MT (217km) of line pipe to the present expansion project on the DBNGP (known as the Stage 4 expansion), which is scheduled for completion by the end of 2006. Once the Stage 5A expansion has been completed, JFE and Metal One will have supplied over 112,000MT of line pipe to the DBNGP Expansion Projects.

JFE Steel and Metal One are very proud to have the opportunity to support the DBNGP Stage 5A expansion project as one of Australia's most significant infrastructure projects, and will continue to cooperate in future expansions of the DBNGP.

(Remarks)
DBNGP = Dampier Bunbury Natural Gas Pipeline
(WA) = Western Australia
Steel Line Pipe was not involved in the Stage 1 - 3 expansion

Attachment 1
Attachment 1 "Stage4" and "Stage5" MAP
 
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