Eagle Ford Gas Attracts Steel | Russell T. Rudy Energy LLC
A recent article in “Rigzone” points out that the Coastal Bend, a 12 county area centered around Corpus Christi, has long been a hub for oil and gas production and processing. However, cheap and abundant Eagle Ford natural gas has now attracted 2 foreign steel makers; The voestalpine Group headquartered in Linz, Austria and Taijin Pipe Corporation, a Chinese entity.
The voestalpine Group produces high quality steel used in automobile and appliance manufacturing as well as construction and oil and gas applications. Their $750 million facility will manufacture hot-briquetted iron via the direct reduction method. First production is anticipated by year-end 2015.
Taijin Pipe Corporation will build a $1 billion facility which will produce seamless steel pipe for the oil and gas industry. The new plant will represent the company’s largest single investment in a U.S. facility.
These two projects demonstrate how the shale gas revolution can generate new avenues of economic growth for producing regions.
To read the article in its entirety, which includes an in-depth interview with a spokesman for The voestalpine Group, please go to http://www.rigzone.com/news/oil_gas/a/132300/Eagle .