Jiangsu Chang bao Steel Tube Co. plans to establish a mill in Sohar, Oman, producing up to 50,000 tonnes/year of OCTG line pipe and casings, the Chinese seamless pipemaker says in a stock exchange filing seen by Kallanish.

The $20 million project is being carried out because Jiangsu wants to expand its sales in the "...key" oil and gas market of the Middle East, the firm says, adding that it also wants to boost foreign currency earnings. Omani authorities have not yet granted approval for the new plant.

The company’s management could not be reached for comment on source of feedstock, production range or commissioning date of the new plant. However, considering the relatively small investment outlay, the plant could be a premium finishing unit for OCTG pipe such as the one Vallourec operates in neighbouring Saudi Arabia.

Changzhou City-based Jiangsu produces up to 750,000t/y of seamless pipe. This comprises 250,000t of tubing, 250,000t of casing, 150,000t of boiler pipes and 100,000t high pressure boiler pipe.