The bidding process to supply 500 kilometers of pipes for Vaca Muerta is far from being closed, judging by the decision of the Techint group to initiate an investigation against the Indian company that won the tender. Sources close to Techint said that the group is evaluating the possibility of initiating an investigation for alleged dumping against Welspun, the Indian firm that won the tender by offering a price 40% lower. The competitor, one of the main producers of pipes for transporting oil, gas, and water, won the tender for the pipes for the project that will transport gas from Vaca Muerta to Río Negro to be liquefied and exported on ships. The offer was US$ 200 million, 40% less than Techint's proposal. The Techint Group is considering presenting a dumping case for this particular case before the competent authorities, to avoid damage to local production and the associated employment. Today, Tenaris Siat employs 420 people, and for each employee of the company, it is estimated that there are another 4 related jobs in its value chain. Tenaris is the world's leading manufacturer of seamless and welded steel pipes, has production plants in 17 countries, and more than 26,000 employees globally. Sources close to the group ensure that their offer would have been competitive with the international price under 'fair' competition conditions for the project. Techint maintained that the Indian offer was at 'dumping prices', with pipes made from Chinese steel. Some sources indicate that the proposal may not have contemplated, for example, the costs of tariffs and the statistical rate paid for imports, freight and logistics, port expenses, and financial costs. It is made up of the oil companies Pan American Energy (PAE, of the Bulgheroni family), YPF, Pampa Energía (of the Mindlin family), the British of German capital Harbour Energy, and the Norwegian Golar LNG.
Techint vs Welspun: The Vaca Muerta Pipeline Dispute
Argentine industrial giant Techint accuses Indian company Welspun of dumping after it won the tender to supply pipes for the Vaca Muerta project with a 40% cheaper offer. The conflict threatens major investments and jobs in the country.