Dura-Bond Industries has won a contract worth over $400m to produce steel pipe for a 550-mile natural gas pipeline project in the US.
The proposed Atlantic Coast Pipeline, which is expected to cost between $4.5bn and $5bn, is being developed by four energy firms Dominion, Duke Energy, Piedmont Natural Gas and AGL Resources.
The pipeline will transport natural gas from West Virginia to eastern North Carolina.
It will run from Harrison County in West Virginia, south-east via Virginia with an extension to Chesapeake and south through central North Carolina to Robeson County.
Dura-Bond plans to produce the pipe at its Steelton mill in Pennsylvania starting late 2015 through March 2017.
Construction on the project is expected to commence in late 2016 after the approval from the Federal Energy Regulatory Commission. The pipeline is expected to start services by late 2018.
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By GlobalDataThe pipeline, which can initially produce 1.5 billion cubic feet of natural gas per day, has 20-year contracts, subject to regulatory approval.
Dominion Energy president Diane Leopold said: "Dura-Bond has an outstanding reputation in the industry and has been a long-term supplier of pipe and pipe coating for Dominion’s gas transmission business, dating back to the 1970s.
"This contract alone will provide significant economic growth to the region, beyond cleaner air, lower customer bills and jobs."
In a separate transaction, Dura-Bond has signed an agreement to produce 39 miles of additional 36-inch and 30-inch outside diameter steel pipe for Dominion’s Supply Header project in West Virginia and Pennsylvania.