Vallourec wins tubular supply contract for Prinos CO2 storage project

Energean subsidiary EnEarth has selected Vallourec to supply around 3,000 tonnes of casing pipe for Greece's flagship offshore carbon storage project.

By Rowen Brooks Mon, 21 September 2026 AI level 2 of 5

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Rows of gray industrial pipes are stacked in layers across a large outdoor storage yard under bright daylight.

Vallourec, the Euronext-listed French manufacturer of premium seamless steel tubes, has been awarded a contract to supply approximately 3,000 tonnes of casing pipes and accessories to EnEarth, a subsidiary of Energean, for the first phase of the Prinos CO2 Carbon Storage project offshore Greece. The deal marks Vallourec's most prominent entry into the carbon capture and storage (CCS) supply chain in Europe.

The contract covers seamless carbon steel and corrosion-resistant alloy casing pipes fitted with Vallourec's VAM premium connections, which the company positions as critical for maintaining well integrity over the multi-decade lifespan of a permanent CO2 reservoir. The scope also includes the company's CLEANWELL dope-free connection solution, designed to reduce the use of thread compounds during installation.

The project

Prinos CO2 aims to convert a depleted offshore oil reservoir into a permanent geological CO2 storage site. According to an independent competent person's report from Netherland, Sewell and Associates (NSAI), the site carries a targeted injection capacity of up to 2.8 million tonnes per year and a proved-plus-probable storage capacity of 51.5 million tonnes. Those figures are drawn from the developer's own commissioned assessment and have not been independently verified by this publication.

The European Commission has designated Prinos CO2 as a Project of Common Interest, making it eligible for EU and Greek national funding. EnEarth's head of carbon storage, Nikolas Rigas, described it as "one of the first large-scale CCS developments to be built in Europe and the first of its kind in the Eastern Mediterranean." The project is aimed at supporting industrial decarbonisation across Greece and the broader eastern Mediterranean, where heavy-emitting industries have limited near-term alternatives to fossil fuels.

Market context

Europe's CCS infrastructure buildout is accelerating, driven by the EU's industrial decarbonisation agenda and binding emissions-reduction targets under the European Green Deal. The continent's first large-scale CO2 storage projects, including the Northern Lights facility in Norway, have moved from permit to injection phase, demonstrating that offshore geological storage is technically proven if not yet cheap. Prinos represents the southern flank of that buildout, targeting industrial emitters in south-eastern Europe where grid decarbonisation is slower and carbon-intensive industry remains a significant share of output.

For Vallourec, the contract is strategically significant beyond its immediate tonnage. The company's core business has historically centred on oil and gas drilling, where premium tubulars are a high-value consumable. CCS wells share many of the same integrity requirements, creating a logical adjacency. Vallourec's chairman and chief executive Philippe Guillemot said the award "marks an important step in the development of our Carbon Capture and Storage business," signalling the company's intent to build a dedicated CCS revenue line as fossil-fuel drilling investment faces long-term headwinds.

Policy and capital read-across

The commercial viability of large-scale CCS in Europe depends heavily on the carbon price under the EU Emissions Trading System (ETS) and on direct grant support. The EU Innovation Fund, financed by ETS auction revenues, has been a key source of capital for first-of-a-kind CCS projects. The European Commission's Net-Zero Industry Act also includes storage capacity targets that create policy-level demand for projects like Prinos.

Vallourec did not disclose the contract value or the timeline for delivery of the casing package. EnEarth has not yet confirmed a final investment decision for subsequent development phases, though Vallourec's statement described the award as a "strong platform" for future phases of Prinos and additional CCS opportunities across the continent. Progress toward a final investment decision, a named industrial offtaker for CO2 transport and storage services, and confirmed EU grant disbursements will be the milestones to watch.