The Gazprom headquarters hosted today a working meeting among Alexey Miller, Chairman of the Gazprom Management Committee, Alexey Mordashov, Director General of Severstal and Dmitry Pumpyansky, Chairman of the Pipe Metallurgical Company Board of Directors.

Gazprom has a long history of successful cooperation with Russian pipe manufacturers, primarily under the sci-tech cooperation programs. In particular, on the Company's request the unique large diameter pipes were developed for the construction of the Bovanenkovo – Ukhta gas trunkline system. These 1,420 millimeter high-strength cold-resistant flow-coated pipes made of K65 (X80) steel are designed for the operating pressure of 11.8 MPa – the world's record for onshore gas pipelines.

At present, Gazprom and the pipe manufacturers are focused on creating and introducing the Ő100-Ő120 large diameter pipes, threaded pipes with leak-proof thread as well as acid-resistant, cold-resistant and vacuum-insulated pipes.

The meeting participants assessed the readiness of Russian pipe manufacturers for supplying pipes and fitting materials to be used in two major gas transmission projects of Gazprom – Southern Corridor (it will secure gas supply to southern Russia and to South Stream) and Power of Siberia. It was pointed out that new types of products meeting the most up-to-date standards were required for projects' implementation.

For instance, the unique unparalleled in the world 813 millimeter pipes with a 39 millimeter wall thickness with be used during the construction of some Southern Corridor sections. These pipes made of K65 steel are designed for the super-high operating pressure of 28.45 MPa.

For the Power of Siberia gas trunkline system large diameter pipes with high strain capacity are required. They should remain operational in active tectonic zones as well as the territories of seismic activity higher than 8 points.

Today the Russian pipe manufacturers have almost mastered the production process and agreed with Gazprom the specifications of pipe products required for the implementation of the mentioned gas transmission projects. The companies are planning to finish the remaining tests before the year end.

“Early this year we announced that Gazprom had new large-scale projects lying ahead, namely, Southern Corridor and Power of Siberia. Bearing in mind the successful experience of cooperation, we invited Russian pipe manufacturers to take part in their implementation.

Russian manufacturers successfully coped with the tasks assigned to them. Today we can state with assurance that Southern Corridor and Power of Siberia will be supplied with Russian pipes,” said Alexey Miller.

Background

The main pipe suppliers to Gazprom are United Metallurgical Company, Pipe Metallurgical Company, Chelyabinsk Pipe Rolling Plant and Severstal. The meetings led by the Gazprom Management Committee Chairman Alexey Miller with the heads of these companies are held on a regular basis.

At the meeting held in November 2011 Alexey Miller and the leading pipe manufacturing companies approved the price formula to be applied when concluding contracts for pipe products supply, primarily large diameter pipes (LDP). In July 2013 price formulas were agreed for seamless pipes and external corrosion-proof coating. At present, over 95 per cent of pipe purchases are made with the application of the price formula.

In July 2012 Gazprom inked the Sci-Tech Cooperation Agreements with United Metallurgical Company, Pipe Metallurgical Company, Chelyabinsk Pipe Rolling Plant and Severstal.

The Southern Corridor gas pipeline system will cross eight constituent entities of the Russian Federation, enabling additional natural gas deliveries to central and southern regions of Russia as well as securing uninterrupted gas supplies to the South Stream gas pipeline.

Power of Siberia will become a unified gas transmission system for the Irkutsk and Yakutia gas production centers and convey gas from these centers to Vladivostok via Khabarovsk.