3D Metalforge signs deal to supply additive manufactured parts to US-based oil and gas refineries
An exclusive deal will see 3D Metalforge produce a range of spare parts for supply to US-based Par Pacific Holdings.
3D Metalforge (ASX: 3MF) has signed an exclusive agreement with Houston-based oil and gas company Par Pacific Holdings to supply a range of additive manufactured parts for three of its US refineries.
Under the terms of the deal, 3D Metalforge will begin working to identify and produce a range of parts for supply to Par Pacific based on operational spare parts requirements.
While there is no minimum order value, 3D Metalforge said the initial phase of the deal would have an estimated value of $400,000 per year based on Par Pacific’s requirements over the past 12 months.
Working relationship
3D Metalforge chief executive officer Matthew Waterhouse said the new agreement followed field trials with Par Pacific and would cement the working relationship.
“We look forward to continuing to support their spare part needs and help make their operations and supply chains more robust and sustainable,” he said.
“Once this phase is complete, we will discuss the possibility of placing a production centre at refineries to further reduce the delivery time of parts and improve supply chain sustainability.”
The deal is binding for an initial period until December 2024 and thereafter on a month-to-month basis, subject to 30 days notice of termination by either party.
3D field tests
Par Pacific owns three active refineries (and one idle refinery) in Hawaii, Washington and Wyoming with a combined capacity of 154,000 barrels per day.
The $1.3 billion market cap company partnered with 3D Metalforge in August to design, print and field test a range of parts to American Petroleum Institute standards before considering integrating the technology to its own regular supply chain.
Additive manufacturing has been shown to reduce Par Pacific’s delivery time on critical parts, improving supply chain sustainability and reducing the transportation emissions for strategic parts.
The approach cuts down transportation emissions and produces parts more cost-effectively and faster than traditional manufacturing.
3D Metalforge’s proprietary additive manufacturing technology is already supporting a host of blue-chip companies from different sectors committed to adopting greener manufacturing and production technology.