Sumitomo Corporation has signed an OCTG supply contract with Qatar Energy, Qatar's state-owned energy company. The high-alloy seamless OCTG, manufactured by Nippon Steel Corporation, to be supplied under this contract will be used for CCS applications in the Blue Ammonia production plant construction project led by Qatar Energy in the Mesaieed region of Qatar.

The supply volume for this project is approximately 1,000 tons, and this is the first order for OCTG by a Japanese company for a CCS project in the Middle East.

The product will use NSCarbolex Neutral, a low-CO2 steel material developed by Nippon Steel Corporation.

Qatar owns significant amount of natural gas reserves, which holds approximately 20% of the world's share of LNG exports. While supplying natural gas as a transition energy source, Qatar Energy is also involved in ammonia production and CCS projects for decarbonization.

Qatar Energy's project to construct a blue ammonia production plant will produce ammonia by separating CO2 from methane gas emitted from the Mesaieed region, one of the most industrial areas in Qatar, and storing it underground. The plant will be one of the world's largest ammonia production plants, with an annual production capacity of 1.2 million tons.

CO2 injected into the ground contains various impurities that increase the corrosiveness of the OCTG. Nippon Steel's high-alloy OCTG has demonstrated excellent corrosion resistance in harsh oil and gas development environments, and in recent years has been used not only in conventional oil and gas fields but also in other areas of decarbonization and new energy such as CCS.