Tenaris Algoma Tubes Inc. will receive $9 million to expand production, creating 153 full-time jobs in Sault Ste. Marie, Ontario. Tenaris makes steel pipe and tubing needed for drilling natural gas and oil wells.
Drilling and completions have slowed substantially because of decreased global and domestic demand for energy resulting from COVID-19. Tenaris took advantage of factory downtime to expand and enhance various parts of its manufacturing plant.
This is Canadian oil and natural gas: Tenaris
The company recently announced it will receive funding through Ontario’s Northern Ontario Heritage Fund Corporation that will help support the expansion. Tenaris is set to complete the first upgrade, at a cost of $36 million, and expects to invest another $81 million by the end of 2021.
“It’s a very ambitious endeavour, timed so we can serve our customers in the Canadian oil and natural gas industry for next year’s winter drilling season,” said David McHattie, vice president of institutional relations with Tenaris Canada. “We plan to be producing pipes in the fourth quarter of 2021, which will allow us to maintain our inventory and sustain our customer’s operations.”
While Canada’s oil and natural gas resources are primarily located in the western provinces and Atlantic offshore, the industry has a nation-wide reach. From manufactured goods to technical expertise, the industry’s supply chain extends to all parts of the country.
This announcement from Tenaris is one more example of how the natural gas and oil industry can kick-start a sustainable and resilient economic recovery across Canada.