Construction is underway on the Phase 2 expansion project at Tenaris’s service center in Midland, TX. The company is expanding its storage and service capabilities for customers in the Permian, the nation’s leading oil producing basin, and other key shale plays across the U.S.
The $18 million USD investment includes: the development of another 30-acres of pipe storage with a total capacity of about 90 acres; installation of a buck-on unit to assemble pipe accessories which is now operational; construction of a permanent office building; warehouse and truck parking lot expansion; a maintenance workshop and three new Hyster fork lifts to move and load pipe.
Tenaris is also developing infrastructure onsite to support its sucker rods service center with an additional approximate investment of $6 million USD that includes: an equivalent storage capacity of 100k pieces of sucker rods and accessories, an industrial building housing equipment such as a machine to inject guides of various sizes onto the rods, and will offer the new product line TenFlow™ and Helix™ guiding solutions. In the coming months, a Tenaris designed, unique buck-on machine will be installed to offer customers an in-house rods and coupling make-up service.
The Midland service center expansion is also integrating coiled tubing services, with installs and string swaps performed onsite.
This second phase gives us the opportunity to raise our value proposition in the region, from OCTG products and services to the deployment of sucker rods and coiled tubing," said Luca Zanotti, Tenaris President, USA.
The Midland service center opened in 2016, offering pipe storage, inspection, inventory and accessories management, and rig preparation with direct delivery of OCTG through the Rig Direct® service model, which includes technical support, pipe management and field services.
"We demonstrated the value of Rig Direct® in the first phase of the project. The service component is based on our industrial capacity at our facilities in the U.S., including our seamless mill in Bay City and our Hickman mill in Arkansas," added Zanotti.
To date, approximately 65 percent of Tenaris’s sales of OCTG in the U.S. are through Rig Direct® services.
Phase 2 consists of several stages of construction and is projected to be completed in 2019.