Line Pipe is steel pipe used for the transmission of Oil, natural Gas and Petroleum Distillates. The pipe is fabricated in diameters ranging from 1.8 inches to 42 inches.

Who supplies it?

Line Pipe is fabricated by a number of mills spanning the globe. A notable concentration of pipe mills is found right here in the US.

Where is Line Pipe used?

Most Line Pipe has been consumed in the US and Middle Eastern markets. However, due to an increase in exploration and production activity in China, Columbia, South America, and the Russian Republics, these markets will be of great importance over the next decade.

Why AWR entered the Line Pipe Market

As noted above, worldwide demand for this product will increase into the next millennium. In addition, several quality Eastern European mills have available production capacity because they no longer supply the Soviet market.

What is AWR’s niche?

AWR, however, is synonymous with marketing. AWR sees market potential in the US with a nominal cost of entry and at the same time sees low cost (high quality) manufacturing capacity in Eastern Europe. AWR also has the capacity to increase these mills’ customer base. The mill (s) have API S-L certification.

Why now?

Quite simply, its an arbitrage opportunity with great upside potential. While other pipe mills are busy manufacturing and selling their own product without any interest in attempting to bring new capacity into the world marketplace, AWR is looking for the means to achieve such a goal.

AWR is in the final stages of negotiation with a select Eastern mill with whom we are contracting the purchase of a substantial quantity of their annual production capacity. We will have the exclusive rights to market their product in the West (North, Central, South America). They will, on many occasions, manufacture to our customers’ proprietary specifications. The mill’s annual commitment to AWR will be more than adequate to support out ongoing operations for years to come.

Competitive Research

AWR has developed a relationship with a world renowned metallurgist who is working on perfecting a technology that will combat the problem of Hydrogen Embrittlement in severe and sour conditions. AWR has made arrangements to contract the metallurgist for the exclusive rights to the process when the research is completed.

It is anticipated that the technology will be fully developed in 18 months and a patent will be in place shortly. In the meantime, AWR will be licensing the technology and collecting royalties from other Linepipe manufacturers who use AWR’s Hydrogen Migration Control System.

Inquiry

For further information, or to request a price and delivery quotation, contact

awrlinepipe@alliedworldresources.com

.