Acceptance of Orders for High-Alloy Seamless OCTG and Employment of Green Steel “NSCarbolex Neutral” Finalized for CCS to Be Used in Construction Project for Blue Ammonia Manufacturing Plant in the State of Qatar

15 June 2024

Nippon Steel Corporation in a joint endeavor with Sumitomo Corporation, has received orders for high-alloy seamless OCTG that it manufactures for a CCS project intended for a project to construct blue ammonia manufacturing plant  that QatarEnergy  an Energy company operated by the State of Qatar, will lead in Qatar’s Mesaieed Region. Nippon Steel recently conducted the shipment of the first articles in those orders. In this project, “NSCarbolex™ Neutral, a form of green steel applying the mass balance approach(Note 4)  offered by Nippon Steel, will be employed.
This project constitutes the first receipt of orders for high-alloy seamless OCTG and NSCarbolex™ Neutral, for a large-scale CCS project in the Middle Eastern region.

Qatar boasts significant natural gas reserves and, in terms of LNG export volume, produces roughly one-third of all of the world’s natural gas. The state is also engaging in ammonia manufacturing and CCS projects for decarbonization purposes while supplying natural gas as a form of transition energy. In the blue ammonia manufacturing plant construction project being implemented by Qatar Energy, CO2 will be separated from methane gas emitted from the Mesaieed Region, one of Qatar’s leading industrial zones, and stored underground, after which it will be used to produce ammonia. The plant will be one of the world’s largest ammonia manufacturing plants with an annual production capacity of 1.2 million tons.

CO2 that is injected underground mixes with various forms of impurities. This causes corrosion in OCTG to elevate. High-alloy OCTG by Nippon Steel have shown superior corrosive resistance in what had been extreme petroleum and gas development environments. In recent years, these pipes have been employed not only in conventional oil and gas fields but also in CCS and other decarbonization and new energy sectors in other regions.

As part of its initiatives to achieve carbon neutrality by 2050, Nippon Steel will continue to provide two types of value in the form of NSCarbolex Neutral, a steel product with assigned CO2 emission reduction volumes in steel manufacturing processes, and NSCarbolex Solution(Note 5), a highly functional product and solution technology that contributes to CO2 emission reduction in society. Through this provision, Nippon Steel will continue to make its contribution to promoting its customers’ decarbonization, enhancing their competitiveness, and, by extension, achieving a carbon-neutral society.