Tenaris Expands Permian Capabilities With New Rail Spur At Midland Service Center

The new section of railroad will directly connect the company’s yard with the Union Pacific railway, allowing pipe to be safely unloaded by rail. Construction on the rail spur is planned to start in early 2026 with its completion forecasted later the same year.

The $12.5M USD investment will allow close to one third of the yard’s volume to be received by rail, increasing efficiency, reducing cost, and minimizing the number of trucks on the road for safer operations and decreased carbon emissions.

“Our Midland service center is the heart of our operations in the Permian Basin,” Guillermo Moreno, Tenaris US President, said. “Since its opening, we have only seen its potential grow, now serving as Tenaris’s largest pipe yard worldwide. This rail spur is a great example of our commitment to safety meeting our drive for customer service, benefitting both our customers and our community.”

Since 2016, Tenaris has invested $56M USD in the service center, earlier this year announcing an additional $16M USD expansion to increase the yard’s storage capacity by 25,000 tons through the development of an additional 45 acres.

Tenaris’s Midland service center has played a key role in consolidating the Rig Direct® mill-to-well service model in the US, enabling the company to partner with oil and gas operators of all sizes to support their drilling projects through an integrated service framework that fosters collaboration. With the rail spur addition, the company aims to bring additional cost and efficiency benefits to its customers across the region.

Learn more about our Rig Direct mill-to-well service model (https://www.tenaris.com/en/products-and-services/rig-direct).