Metals and mining, Power of Siberia (Sila Sibiri)
On results of the auction, Izhora pipe plant (division of Severstal Russian Steel) will supply about 100 thousand tons of large diameter pipes to Gazprom for the project of Power of Siberia.
TMK wins the tenders of Gazprom for the supply of pipes up to 1.5 billion roubles by the end of 2015.Edited by Rhod Mackenzie / 2015-09-14 09:03:36
Pipe Metallurgical Company (TMK), one of the world's largest producers of pipes for the oil and gas industry, has taken part in tenders for the supply of premium tubular products for Gazprom, the largest gas company in the world. Following two open requests for proposals the applications of TMK were found top in 8 of the 13 lots, according to the materials of TMK.
According to the final protocol, in Q3 and 4 of 2015, TMK will supply Gazprom over 13 thousand tons of seamless steel pipes with premium connections. Among the delivered products are: casings with diameters of 324, 245, 168 and 140 mm, tubing with diameters of 89 and 73 mm, and subs. Total price of all lots won by TMK amounted to 1.5 billion roubles.
The amount of investment in the project of the Gazprom’s gas transportation system Power of Siberia, taking into account the development of fields, is estimated at $55 billion, the head of the Russian Energy Ministry Alexander Novak stated.
"Power of Siberia is a large-scale project, the value of which with the development of fields will be $55 billion, to date the assessment is so. And it's a huge order for our industry, because more than 90% of the equipment, pipes and other things will be ordered, of course, at our enterprises. Today, due to the fact that the construction has begun, our metallurgical enterprises have received a new order,"- said Mr. Novak.
Over 200 thousand tons of pipes have been delivered to Yakutia for the construction of Power of Siberia. This is a half of the necessary volume.
Currently 216 thousand tons of pipes have been shipped, this is 49% of the total volume (plan – 439 thousand tons). This winter over 185 thousand pipes will be welded in the Olekminsky district.
The total volume of cargo which will be delivered in the navigation period for the construction of Power of Siberia is 800 thousand tons. The navigation will be over in late September-October.
The cargo shipment is held according to the schedule. The first shipment started in May.
In the first six months of 2015, the delivery of steel products from hot rolling mill 5000 of MMK increased by 34% as compared with the same period of the previous year. The increase amounted to 142 thousand tons.
Mechel reports of the supply of fittings, structural steel and metalware for the construction of Power of Siberia and Altai gas pipelines.
Mechel’s products are used for the output of reinforced weighing materials produced at the Berezovsky plant of structural steel for the construction of the largest route pipelines of national importance –Power of Siberia and Altai.
Reinforced weighing materials are installed on pipes with the diameter of up to 1,420 mm and are meant for the balancing of oil and gas pipelines at the passways via wetlands, rivers and other water obstacles not allowing the constructions to float to the surface.
The majority of the shipped metal was produced at the Chelyabinsk metallurgical plant.
According to OMK’s president V.Markin, last year was successful for the company. OMK has managed to achieve growth in the production of various types of pipes and other products, which was associated with participation in major projects. Thus, OMK won a tender to supply pipes for the first and second lines of South Stream, modified in the Turkish Stream project. The share of the company's products in this project will amount to about one third of the total required volume.
"The suspension of the project of the first line construction is completed, by the end of 2016 it is planned to supply the first gas via it. Our company must deliver 80 thousand tons of pipes for the first line, a part of which has already been made,"- said Vladimir Markin. In addition to Turkish Stream, OMK is one of the largest suppliers of pipes for Power of Siberia, Southern Corridor, Bovanenkovo-Ukhta, Kuyumba-Taishet, Zapolyarie-Purpe and a number of other construction projects, the company also plans to participate in the gas pipelines of Altai and the Krasnodar region – the Crimea.
“Vyksa metallurgical plant” JSC (VMZ, in the structure of OMK CJSC) in Q1 2015 produced 520.4 thousand tons of pipes- by 43% more against Q1 2014. The output of railway wheels fell by 56%, CEO V. Markin, said.
According to him, the growth of pipe production is due to the rise of supply volume for the strategic partners of OMK – Gazprom and Transneft. He said that in Q1 the company shipped pipes for such projects as Power of Siberia and Bovanenkovo-Ukhta. The fall of railway wheels output is explained by the fall of demand and a negative influence of dumping supplies of the Ukrainian wheels.
In 2015, Gazprom may increase the purchase of large-diameter pipes (LDP) almost 2 times in comparison with the previous year to 1.7-2 million tons, chairman of the coordinating council of the Association of Pipes Producers Ivan Shabalov reports.
Tube producers want advances from the state-owned companies.
Russian pipe producers, unlike the majority of metal producers, not much benefiting from the devaluation can get support from the government. According to "the Kommersant", Arkadiy Dvorkovich instructed ministries to examine the issue of the advance of the mandatory procurement of pipes by the companies owned by the fuel and energy complex by 30%. Currently this practice is applied only by "Gazprom"’s pipeline "The Power of Siberia", and, according to "the Kommersant", the state-owned companies do not want its expansion.