Tenaris Expands Midland, Texas Service Center to Support Growing Energy Demands
Tenaris has announced a significant expansion of its service center in Midland, Texas, reinforcing its commitment to meeting the increasing needs of customers in the Permian Basin and other key shale plays across the United States. This strategic investment, valued at $16 million USD, is set to enhance operational efficiency and expand storage capacity, further strengthening Tenaris’s role as a key supplier to the U.S. energy sector.
Expansion Details and Investment Scope
The expansion project will add an additional 45 acres to the existing facility, increasing storage capacity by 25,000 tons by the end of 2025. This development is aimed at optimizing yard organization and improving operational flow while integrating state-of-the-art digital technologies to elevate both quality control and safety standards for employees.
The investment comes in response to the steady increase in energy operations over the past two years, driven by heightened activity in shale plays. As a direct result of this expansion, approximately 50 new jobs will be created, reinforcing the company’s role in fostering economic growth in the Midland region.
“As the leading domestic manufacturer of steel pipes, Tenaris is uniquely positioned to ensure supply security for U.S. customers, leveraging its technological expertise, unmatched industrial capacity, and broad field presence. Our continuous investment in cutting-edge technologies and services, coupled with the expansion of our service center, demonstrates our longstanding commitment to supporting American energy,” said Guillermo Moreno, Chief Commercial Officer for Tenaris in the U.S.
Strengthening the Rig Direct® Model
Since opening in 2016, the Midland service center has been a critical component of Tenaris’s supply chain strategy. Over the past decade, the company has invested a total of $40 million USD into the facility, ensuring its ability to support operators efficiently through its Rig Direct® service model.
Rig Direct® is a comprehensive, mill-to-well service model designed to streamline the supply chain for oil and gas operators. By delivering pipes directly from the mill to the well site, this approach reduces costs, improves efficiency, and enhances reliability.
The service center’s expansion will further bolster the Rig Direct® model by enabling Tenaris to offer even greater levels of inventory management, logistical support, and technical consulting. With a growing number of customers relying on just-in-time delivery solutions, the expanded service center will help operators reduce lead times and optimize their drilling schedules.
Currently, approximately 60% of the top oil and gas operators in the U.S. utilize Tenaris’s Rig Direct® services. This expansion will enable the company to support even more customers with tailored solutions, helping them improve well integrity, optimize operations, and maintain a strong safety record.
Technology and Sustainability Enhancements
A major focus of the expansion is the integration of advanced digital technologies to enhance quality control and safety. Tenaris has been at the forefront of technological innovation, leveraging automation, artificial intelligence, and data analytics to improve manufacturing and logistics processes. The new digital systems implemented in the expanded service center will provide real-time tracking of inventory, automate yard organization, and ensure seamless coordination with drilling sites.
Beyond operational efficiencies, sustainability is also a key component of the expansion. Tenaris continues to prioritize environmentally responsible practices, including reducing carbon emissions, optimizing energy use, and minimizing material waste. The expanded facility will incorporate energy-efficient lighting, enhanced stormwater management systems, and optimized material handling processes to further reduce the environmental impact of operations.
By integrating digital solutions and sustainable initiatives, Tenaris is not only improving its operational capabilities but also setting a new standard for responsible energy service operations in the U.S.
Economic and Industry Impact
The expansion of the Midland service center represents a major investment in both the local economy and the broader U.S. energy industry. With 50 new jobs created, the facility will offer opportunities for skilled workers, supporting the continued development of the region’s workforce.
Additionally, by increasing domestic storage and logistical capabilities, Tenaris is reinforcing supply chain security for American oil and gas operators. This is particularly significant as the energy industry continues to navigate global supply chain challenges and strives for greater independence from foreign suppliers.
“The energy sector is constantly evolving, and at Tenaris, we are committed to staying ahead of the curve. This expansion allows us to provide even more value to our customers by ensuring they have reliable, high-quality products and services that meet their needs,” added Moreno. “With the additional acreage, improved logistics, and integration of digital solutions, we are setting the foundation for long-term success.”
The expanded service center is expected to be fully operational by the end of 2025. As Tenaris continues to invest in its U.S. operations, this latest initiative underscores the company’s dedication to providing comprehensive, technologically advanced, and sustainable solutions for the oil and gas industry.
With a strong presence in key shale plays, an expanding service model, and a focus on continuous innovation, Tenaris is well-positioned to support the future of American energy production. The company remains committed to enhancing operational efficiencies, driving sustainable practices, and reinforcing its partnership with the U.S. energy sector for years to come.
By expanding its Midland, Texas service center, Tenaris is not just increasing capacity—it is solidifying its leadership in the industry and ensuring that its customers have the resources they need to power the nation’s energy future.
