German Company Sues Baker Hughes Over Steel Valves Installed in Gas Field
09/23/2015 - A German company is suing oilfield services provider Baker Hughes Inc., alleging that it used the wrong type of steel in safety valves intended for a large gas storage facility. As a result, the company’s $2.5 billion investment could be rendered worthless, BloombergBusiness reported.
Citing a complaint filed in U.S. federal court, the news service said TRIUVA Kapitalverwaltungsgesellschaft mbH is claiming that the valves can “crack wide open” if welded in place in a corrosive environment. The valves were installed at an underground storage facility in a salt dome under Etzel, Germany, Bloomberg said.
Bloomberg said the company contends the valves were made from a type of steel normally used in short-term, deep-water applications. The steel, it says, is unsuitable for permanent underground systems -- it is difficult to weld properly and welding causes microscopic changes that leave the pipes prone to corrosion cracks.
Two of the valves ruptured last year, allegedly along defective welds. Unless the valves are replaced, the safety of the facility has been put into question, Bloomberg said, citing court documents.
If German mining regulators revoke licenses on account of safety concerns, the company said its entire investment might become “effectively worthless,” Bloomberg reported.
The lawsuit was filed in the U.S. District Court in Houston, Texas, where Baker Hughes is headquartered.
Bloomberg said the company contends the valves were made from a type of steel normally used in short-term, deep-water applications. The steel, it says, is unsuitable for permanent underground systems -- it is difficult to weld properly and welding causes microscopic changes that leave the pipes prone to corrosion cracks.
Two of the valves ruptured last year, allegedly along defective welds. Unless the valves are replaced, the safety of the facility has been put into question, Bloomberg said, citing court documents.
If German mining regulators revoke licenses on account of safety concerns, the company said its entire investment might become “effectively worthless,” Bloomberg reported.
The lawsuit was filed in the U.S. District Court in Houston, Texas, where Baker Hughes is headquartered.
