Today the Gazprom Headquarters has hosted a working meeting between Alexander Ananenkov, Acting Chairman of the Gazprom Management Committee, Anatoly Sedykh, Chairman of the United Metallurgical Company Board of Directors and Vladimir Markin, President of the United Metallurgical Company.

The parties discussed key issues relevant to the mutual cooperation development in the pipe supply sector. Particularly, the meeting discussed production setup for new range of products with increased operational characteristics for the Gazprom’s large-scale gas transportation projects execution. In this regard, particular attention was paid to the production of pipes unrivalled in the global practice, 420 mm in diameter, designed for 120 Ata pressure and with a flow coat. The pipes will be applied by Gazprom for gas conveyance from the Yamal Peninsula.

The meeting underscored that Gazprom is waiting for development of production capacities development due to the future purchase volume increase of pipe products with the highest technical characteristics.

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The United Metallurgical Company (OMC) was established in 1992 and is a founder of the Pipe Manufacturers Association. Gazkomplektimpex (a wholly-owned subsidiary of Gazprom), TMK, Chelyabinsk Tube Rolling Plant Group, Izhorsky Pipe Plant, VNIIGAZ, VNIIST, TsNIIChermet and NIIgazekonomika are also the founders of the Pipe Manufacturers Association. The Association was established in the aim of coordinating efforts of the Russian pipe producers, scientific institutions producing high-quality, competitive products for Gazprom’s needs.

In April 2004 Gazprom and OMC signed the Protocol of intentions between Gazprom and Vyksunsky Metallurgical Plant over 2004 to 2007. Pursuant to the document the strategic goal for cooperation is to satisfy Gazprom’s needs in import substitute oil and gas pipes with 1220-1420 mm diameter.

In 2006 Gazprom was supplied with 930 thousand t of pipe products where 76 per cent is owned by the Russian producers. OMC supplied 288 thousand t of pipe products to Gazprom, which is nearly 31 per cent of the total supply volume.