Welspun Tubular LLC of Little Rock has landed an order for more than $47 million in coated 20-inch pipe for the Diamond Pipeline, a 440-mile project to move crude oil from the Plains Terminal in Cushing, Oklahoma, to the Valero refinery in Memphis.
The $900 million pipeline project, announced in 2014, is a joint venture between Plains All American Pipeline and publicly traded Valero Energy, based in San Antonio.
"On behalf of our more than 500 employees in the Little Rock area, we're proud to contribute to bringing the benefits of this important piece of energy infrastructure to our community," said Rusty Fisher, senior vice president for sales and marketing at Welspun, a subsidiary of the multinational Welspun Corp. Ltd., based in India. "Through this prestigious pipeline order, Welspun Tubular continues to fulfill its commitment of supporting jobs to the state of Arkansas."
Welspun Tubular has a 740-acre site at the Port of Little Rock, and its $150 million facility is capable of producing 350,000 net tons of spiral welded pipes annually, according to its website.
The Diamond Pipeline project is touted as an enhancement for domestic energy distribution and "the long-term viability of gasoline, diesel and jet fuel production in the region," according to Diamond Pipeline LLC.
"We're pleased to build upon our established relationship with Welspun," said James Ferrell, vice president of supply chain management for Plains.
Randy Zook, president and CEO of the Arkansas Chamber of Commerce, expected benefits for the state beyond the work at Welspun.
"This significant order to Welspun, in addition to the local jobs associated with the pipeline's construction, further amplifies the beneficial economic impact of the Diamond Pipeline on our state," Zook said.