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March 03, 2008
JFE Steel Corporation
    
JFE Steel Books Order from TransCanada for 52,000 Metric Tons of Grade X80 UOE Steel Pipe
 

TOKYO — JFE Steel Corporation has landed an order for approximately 52,000 metric tons of grade X801) UOE steel pipe , in partnership with Metal One Corporation, from TransCanada Corporation (TSX, NYSE: TRP) (TransCanada), a leader in the responsible development and reliable operation of North American energy infrastructure. Production has already begun for the pipe, which will be used for the line pipe in the customer's North Central Corridor Pipeline Project.

Demand for natural gas is growing as a source of clean energy, and so is the demand for X80 line pipe, which is stronger than conventional grade X70 steel and represents the highest grade available under widely used commercial standards. The use of X80 will improve gas transportation efficiency while also reducing total construction and operating costs.

JFE Steel was the first in the world to commercially produce X80 line pipe, which it began in 1989. It has produced a total of 120,000 metric tons of the material to date, including those for TransCanada. During this period it has developed and improved a number of technologies in response to customer requirements and has also delivered grade X100 line pipe to three TransCanada projects, making it the only company in the world to produce and deliver X100 on a commercial basis. The latest order is the result of JFE Steel's strong track record with the customer.

The company was recently honored with the Iwatani Naoji Memorial Award for the development and commercialization of steel pipe with sufficient deformation performance to prevent local buckling and ruptures of circumferential welds due to deformation of the pipe caused by ground movement, a problem witnessed in earthquake-prone areas and areas subject to discontinuous ground freezing.

Production of these high-strength steel pipes requires refining technology capable of manufacturing high-grade steel with extremely low levels of impurities and inclusions as well as soft reduction technology sufficient to improve the properties of the steel's core during continuous casting. In addition, the product is supported by advanced heat treatment technologies developed by JFE for steel plates, particularly super online accelerated cooling (Super-OLAC2)) and heat treatment online processing (HOP3)) that enables high-performance, stable manufacturing of high-strength steel.

JFE Steel will continue to develop high-quality steel pipe that is valued by its customers as it seeks to contribute to the development of global energy resources.

Notes:
1) X80: A material described in Line Pipe Standard 5L issued by the American Petroleum Institute. It is designed for high levels of strength, with a minimum yield stress of 555MPa
2) Super-OLAC: On Line Accelerated Cooling facility with high-speed, high-accuracy cooling functions approaching theoretical limits. An example of JFE Steel's Number One technology, deployed in all three JFE plate mills. Honored with the Okochi Memorial Technology Prize and Iwatani Naoji Memorial Award in 2002.
3) HOP (Heat-treatment On-line Process): The first process in the world to enable continuous heat treatment on steel plate rolling lines.

 
Figure 1. TransCanada's North Central Corridor Pipeline Project
Figure 1. TransCanada's North Central Corridor Pipeline Project
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