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Shawcor Ltd. has been awarded a $500-million contract to provide pipe coating services to a natural gas pipeline in Mexico.
The company’s pipe coating division, Pipeline Performance Group (PPG), will cover approximately 706 km of a 36-inch diameter piper with concrete weighted coating.
The operation will require Shawcor to mobilize some facilities in the third quarter of this year.
The coating is expected to begin in early 2023 and will take roughly one year to complete, the company said in a press release late Thursday.
Shawcor shares climbed 28 per cent to close Friday's session at $7.89 on the Toronto Stock Exchange.
“This project reinforces the trend of increased large project activations we are seeing globally and coupled with the recently announced Scarborough Gas Export Pipeline, will return Shawcor’s conventional offshore pipe coating activity to levels not seen since the oil price collapse of 2015,” Kevin Reizer, the president of Pipeline Performance Group, said in the press release.
The Southeast Gateway Pipeline Project is owned by a Mexican subsidiary of TC Energy Corporation and will connect several offshore natural gas facilities in southeast Mexico.