NEW YORK Tenaris SA expects pipe and tube demand from the Mexican market to rise in the medium term, as the countrynow an importer of natural gasbegins to exploit its shale reserves.
"In the medium term, Mexico will significantly step up its operations," chairman and chief executive officer Paolo Rocca said during the companys first-quarter earnings conference call.
The country is currently reviewing its energy policy under a new administration, which could give independent drillers more access to resources. "We are positive on the trend in which Mexico is moving and on how the country is reacting at this time under the new government," Rocca said.
China also might see significant growth in shale drilling activity. "It could be very, very important in the future, depending on how fast Chinese companies, (Royal Dutch) Shell (Plc) and Western companies decide to move their program(s)," Rocca said.
Luxembourg-based Tenaris, which supplies The Hague, Netherlands-based Shells shale exploration in the Asian country, recently began producing its "most sophisticated products" at its facility in Qingdao, Rocca said.