Pipe manufacturer Tenaris announced Feb. 28 the expansion of its service center located in Midland, Texas, citing its desires to meet the growing demand of customers in the Permian Basin and other key shale plays across the United States. The $16 million investment will expand storage capacity by 25,000 tons by the end of 2025, developing an additional 45 acres. This expansion will enhance yard organization and flow while integrating advanced digital technology to improve quality and safety for employees. The investment responds to an increase in operations over the past two years, which has led to the creation of approximately 50 new jobs in the region.
Guillermo Moreno, Chief Commercial Officer for Tenaris in the United States, said, “As the leading domestic manufacturer of steel pipes, Tenaris is uniquely positioned to ensure supply security for U.S. customers, leveraging its technological expertise, unmatched industrial capacity and broad field presence. Our continuous investment in cutting-edge technologies and services plus the expansion of our service center demonstrate our longstanding commitment to supporting American energy.”
Since its opening in 2016, Tenaris has invested $40 million in the Midland service center. This investment has played a role in consolidating the Rig Direct mill-to-well service model in the United States, partnering with oil and gas operators of all sizes to support their drilling projects by reducing costs, improving efficiency, and enhancing reliability through an integrated service framework that fosters collaboration.
From technical consulting and supply chain integration to the delivery of ready-to-run pipes at the rig and well integrity support services, Rig Direct has helped operators enhance well quality and reliability, improve rig site safety, and minimize the environmental footprint of drilling operations. Today, approximately 60 percent of the top oil and gas operators in the United States rely on Tenaris’s Rig Direct service model to achieve greater efficiency.
Tenaris’s expansion reflects the continued growth of the Basin.