Overseas orders for deep-sea umbilical pipes have surged, with two major European alloy pipe companies securing orders exceeding 1.3 billion yuan, signaling a potential boom in the industry.

In June 2026, two leading European special alloy seamless pipe manufacturers, Alleima of Sweden and Tubacex of Spain, successively secured large orders for subsea umbilical pipes, totaling over 1.3 billion yuan, indicating a significant recovery in industry demand. Subsea umbilical pipes are irreplaceable core components of deep-sea oil and gas extraction systems. Embedded in the umbilical cable connecting surface platforms and subsea equipment, they must withstand extreme conditions such as high pressure and strong corrosion in the deep sea, resulting in high technological barriers and added value. This surge in demand is primarily driven by global energy security concerns leading to expanded offshore oil and gas investment, and the widespread adoption of low-cost oil and gas field reconnection development models, simultaneously boosting demand for pipes in new projects and those used for retrofitting existing pipelines. Compared to the mature high-end corrosion-resistant alloy products, specialized production lines, and integrated industrial chain advantages of overseas companies, Xiaomo suggests that domestic companies: 1. Focus on high-end corrosion-resistant alloy materials to address the shortcomings in core materials; 2. Strengthen the synergy of the entire industrial chain and establish a closed loop from materials to umbilical cables to marine engineering EPC (Engineering, Procurement, and Construction).

Content 1: Overview of Key Events In June 2026, two leading European companies specializing in seamless special alloy pipes announced large-scale orders for subsea umbilical pipes, indicating a significant recovery in industry demand. Both companies achieved substantial breakthroughs in related orders throughout the year, fully reflecting the rapid release of global demand for high-end special pipes in deep-sea oil and gas development. In June, Alleima of Sweden announced that it had secured a high-end subsea umbilical pipe project order from a leading global marine engineering technology service provider, totaling 995 million Swedish kronor (approximately 700 million RMB). The product utilizes its proprietary SAF™ 2507 corrosion-resistant alloy tubing for the North Kutai Hub Project, a key energy project in Indonesia, located 50 kilometers offshore from East Kalimantan. Delivery is scheduled for 2026-2030, in three phases: 20% in 2026, 60% in 2027, and 20% in 2030. This tubing has 30 years of experience in harsh deep-sea conditions and is primarily integrated into submarine umbilical cables, providing underwater hydraulic control and withstanding long-term high pressure and strong corrosion in the deep-sea environment. Meanwhile, on June 22nd, Spain's Tubacex announced an additional €80 million (approximately RMB 620 million) order for submarine umbilical tubing. Combined with orders placed in February, the company's total umbilical tubing orders for fiscal year 2026 have exceeded €100 million. Orders are supplied to offshore oil and gas projects in Angola, Guyana, and the North Sea, with production handled collaboratively by the professional umbilical pipe manufacturing center in Ternitz, Austria, and a production line in Spain.

II. Core Value of Subsea Umbilical Pipes Subsea umbilical pipes are irreplaceable core components of deep-sea oil and gas extraction systems. Embedded in the umbilical cable connecting surface platforms and subsea equipment, their core functions include: transporting hydraulic oil and downhole chemicals, and transmitting equipment control signals. The operating conditions place extremely high demands on materials: they must withstand extreme environments such as ultra-deep water, high pressure, alternating fatigue, and seawater corrosion for extended periods. Companies must possess the capability to develop high-end corrosion-resistant alloys and provide complete solutions for high-precision seamless pipes. The industry has high technological barriers and significant product added value.

III. Underlying Drivers of Industry Demand Recovery 1. Global Energy Security Strategies Drive Expansion of Offshore Oil and Gas Capital Expenditure International oil prices fluctuated significantly in the first half of 2026. In March and April, Brent crude oil prices surged to $120 per barrel due to Middle East geopolitical conflicts, highlighting the high importance countries place on energy self-sufficiency and supply security. Traditional offshore oil and gas producing areas such as the North Sea, the Gulf of Mexico, and Brazil continue to increase investment, with a concentrated rollout of new deep-sea oil and gas projects, directly driving demand for high-end special umbilical pipes. 2. The oil and gas field reconnection development model has become the industry mainstream, with continued release of incremental demand. Currently, the industry generally adopts the "reconnection development project" to optimize capacity: new oil wells and oil field expansion blocks are connected to existing operational facilities without the need for new offshore platforms, while aging pipelines are replaced simultaneously. This solution has significant advantages in cost and operational efficiency, driving dual growth in demand for existing oil field retrofitting and new supporting pipe materials.

IV. Industry Summary and Outlook Two European special alloy pipe companies have successively secured large orders worth hundreds of millions of yuan, confirming that the deep-sea high-end pipe market has entered a boom cycle. In the long term, the global energy self-sufficiency strategy, coupled with the accelerated development of deep-sea oil and gas and the release of demand for existing oil field retrofitting, will continue to benefit companies with capabilities in corrosion-resistant alloy materials and high-precision seamless pipe manufacturing; as a high-barrier, high-value-added sub-category, subsea umbilical pipes have stable market demand in the medium to long term.

V. Recommendations for Domestic Enterprises Considering the recent successes of European specialty alloy pipe companies Alleima and Tubacex in securing large orders for subsea umbilical pipes, and the continued upward trend in global demand for deep-sea oil and gas pipelines, and comparing the shortcomings of the domestic industrial chain, we recommend the following for domestic enterprises:

1. Focus on high-end corrosion-resistant alloy materials to address the shortcomings in core materials. Overseas orders primarily rely on high-grade corrosion-resistant alloy pipes such as SAF™2507 super duplex stainless steel, which can withstand long-term high pressure and strong corrosion conditions in the deep sea and has 30 years of mature deep-sea application verification. While small-batch deliveries of S32750 pipes have been achieved domestically, there is insufficient accumulation of long-term test data on deep-sea fatigue and sulfide stress corrosion, and the capacity for large-scale, stable mass production of high-end super duplex steel and nickel-based alloy umbilical pipes is relatively weak. It is recommended that domestic special steel enterprises collaborate with CNOOC and research institutes to establish a special research platform for deep-sea materials, focusing on breakthroughs in super duplex stainless steel smelting, high-precision seamless cold drawing, and long-length continuous pipe manufacturing processes. Simultaneously, they should improve their DNV and API international marine engineering certification systems to shorten the product's overseas project access cycle and gradually replace imported high-end pipes.

2. Strengthen the synergy of the entire industry chain and establish a closed loop connecting materials, umbilical cables, and marine engineering EPC (Engineering, Procurement, and Construction). Overseas companies have formed a complete business chain of "special alloy pipes + umbilical cable integration + marine engineering project support," possessing comprehensive capabilities in material research and development, mass production, and customer technical services. Domestically, there is a fragmentation between special steel pipe manufacturing, submarine cable manufacturing, and oil and gas EPC companies, lacking integrated solution providers. It is recommended to promote deep cooperation between special steel enterprises and umbilical cable manufacturers, establish a long-term joint R&D and supporting supply mechanism, and simultaneously support the establishment of a full-process pipe material traceability and fatigue life testing laboratory. This should be benchmarked against the "materials + complete solutions" model of overseas enterprises to enhance overall competitiveness. At the same time, it is recommended to learn from the cultivation path of "hidden champions" of European enterprises, cultivate specialized brands in niche markets, and enhance global project recognition.