JFE Steel, Metal One to Supply ERW Line Pipe for DBNGP in Australia.

Tokyo, Japan, Oct 16, 2006 - (JCN) - JFE Steel Corporation and Metal One Corporation have been appointed as the sole suppliers of line pipe for the Dampier to Bunbury Pipeline Expansion Project (DBNGP) Stage 5A Expansion Project.

The two companies will supply approximately 82,000MT of 26" OD API 5L X-70 Line Pipe to DBNGP (WA) Nominees Pty Ltd. in Western Australia from October-November 2006.

The DBNGP, one of Australia's most significant infrastructure projects, is a 1600km pipeline transferring natural gas from Dampier in the northwestern part of Western Australia to Bunbury in the southwestern part of the state. Growing demand for gas in the southwest part of Western Australia has made significant expansion of the DBNGP necessary.

The Stage 5A expansion includes more than 570km of pipeline looping at a total construction cost of approximately AUD 700 million. In 2005, JFE Steel and Metal One supplied 30,000MT (217km) of line pipe to the DBNGP's current expansion project (Stage 4), which is scheduled for completion by the end of 2006. Once the Stage 5A expansion has been completed, JFE and Metal One will have supplied over 112,000MT of line pipe to the expansion projects.

Going forward, the two companies will continue to cooperate in future expansions of the DBNGP.

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