Sumitomo Seals the Deal: Lands Major OCTG Contract for Qatar's Blue Ammonia Plant

Sumitomo Corporation has landed a major deal to supply OCTG equipment to Qatar Energy, Qatar's leading energy company. The contract entails providing high-alloy seamless OCTG, produced by Nippon Steel Corporation, for use in CCS applications within the Blue Ammonia production plant project, supported by Qatar Energy in Mesaieed, Qatar. This project marks the first instance of a Japanese firm supplying OCTG for a CCS endeavor in the Middle East, with a supply volume of approximately 1,000 tonnes. This product incorporates NSCarbolex® Neutral, a low-CO2 steel developed by Nippon Steel Corporation, offering exceptional properties while minimizing environmental impact.

Qatar possesses substantial natural gas reserves, accounting for approximately 20% of global LNG exports. As a key supplier of natural gas, a crucial transitional energy source, Qatar Energy is also advancing decarbonization efforts through ammonia production and CCS projects. Their initiative to build a blue ammonia production plant aims to produce ammonia by capturing CO2 from methane emissions in the highly industrialized Mesaieed region and storing it underground. This facility is set to become one of the largest ammonia production plants globally, with an annual capacity of 1.2 million tonnes.

The CO2 injected underground contains various impurities that enhance the corrosiveness of OCTG. Nippon Steel's high-alloy OCTG, long recognized for its exceptional performance in harsh oil and gas environments, is demonstrating increasing versatility.  Beyond its traditional applications, it is now being successfully deployed in cutting-edge decarbonization and new energy initiatives, such as Carbon Capture and Storage (CCS) projects. This expansion into the clean energy sector underscores Nippon Steel's commitment to innovation and its ability to adapt its industry-leading products to support the transition towards a more sustainable future.

Sumitomo Corporation began its journey by exporting Japanese steel pipes abroad and has since broadened its business scope to encompass wholesale, supply chain management, and maintenance services. This expansion has facilitated the development of local communities and economies in various countries. In recent years, Sumitomo Corporation has intensified its efforts to combat climate change by supplying steel pipes for natural gas development, which produces less CO2 than oil, and for CCS and CCUS projects that reduce greenhouse gas emissions. The company remains committed to actively participating in initiatives that advance the realization of a carbon-neutral society.

Sumitomo offers a comprehensive portfolio of metal products, including steel sheets, pipes, and railway materials. These products underpin various industries that shape our daily lives, from transportation (cars, ships, planes, trains) and appliances to energy infrastructure (oil & gas, renewables). Recognizing the shift towards lighter vehicles and electric mobility, Sumitomo is strategically supplying materials that contribute to a greener automotive sector. Beyond product quality and stability, they're actively involved in decarbonization efforts. By providing solutions that minimize CO2 emissions in the energy sector, Sumitomo strives for a carbon-neutral future. Leveraging their global reach and expertise, Sumitomo continuously innovates, introducing new functionalities and value propositions across their supply chains. This commitment ensures the industry achieves carbon neutrality through collaborative efforts.