TMK IPSCO Increases its ULTRA Premium Connections Production Capacity
DOWNERS GROVE, Ill.-(Business Wire)-September 17, 2009 - Steel tubular manufacturer TMK IPSCO announced today that it has completed the first phase of its plan to expand the threading capacity of its ULTRA Premium Connections product line. The plan is being implemented in response to the rapid increase in demand for TMK IPSCO’s Premium Connections, in particular the ULTRA SF, which has become the Premium thread of choice for E&P companies drilling in complex U.S. shale plays. The first phase involved the commissioning of a third production line at the TMK-Houston facility with two scheduled shifts, the addition of a night shift at TMK-Odessa and the installation of ULTRA manufacturing equipment at TMK-Tulsa.
The increase in ULTRA Premium Connections production capacity mirrors the growth in demand for these products following the intensive development of U.S. shale plays. "As a company, TMK IPSCO is focused on servicing our customers within the U.S. shale plays. The success of the ULTRA Premium Connections has accelerated our shale business plan and our focus on the current Bakken, Fayetteville and Haynesville shale areas in which ULTRA has gained significant market share. The overwhelming interest from our customers in ULTRA products in the current plays as well as in future plays like the Marcellus Shale, where ULTRA has been one of the first to make Premium Connection Sales, made it a necessity to increase the production volume of these products" said Vicki Avril, TMK IPSCO President.
When the ULTRA facilities were acquired in December 2006, their available production capacity was 400,000 ft per month (4,600 tons per month). Since that purchase, ULTRA has focused its Research and Development efforts on designing connections for difficult applications, in particular the challenges faced by E&P companies as they operate in the different shale plays. The implementation of the first phase of the expansion plan increased production capacity to 1.25 million feet per month (14,375 tons per month). Phase two of the expansion plan consists of completing the installation of equipment and ramping-up production at the Tulsa facility and commencing work at TMK-Blytheville to allow it to manufacture ULTRA connections. Once the second phase is completed, the total monthly production capacity will reach 1.5 million feet (17,250 tons per month). ULTRA connections have been used in shale plays since July 2004. Since then, their market share has grown to 30%, allowing them to become the most widely used Premium Connections in U.S. shale plays.
“The ULTRA SF, a semi-flush connection with a unique locked metal center shoulder seal, is a great example of developing, testing and then implementing a cost effective solution to an on-going problem in the U.S. shale plays. The need for high torque when rotating in the hole, the need to drill with the casing or liner, the need to withstand high fracturing pressures were the challenges proposed to us by our customer base. The ULTRA SF answered all those challenges and added one more advantage; economics that made sense in the challenging financial environment of 2009. Today, 8 of the top 12 operators working in the U.S. shale plays use the ULTRA line of connections,” said Paul Fullerton, Director of Technical Sales and Product Development.
TMK IPSCO operates in North America as a division of TMK, the largest pipe producer in Russia and one of the three global market leaders. TMK IPSCO is a leading producer of energy tubulars. It operates one steel mill and nine pipe mills and product finishing facilities in seven states across the United States. TMK IPSCO’s pipe mills produce a wide range of seamless and welded energy tubular products including oil & gas well casing and tubing, line pipe, drill pipe, standard pipe and hollow structural sections. TMK IPSCO also manufactures, at two plants in Texas, premium connections for oil and natural gas drilling and production under the ULTRA brand name.
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