Pipe supply contracts signed for South Stream offshore section

OAO Gazprom said contracts have been signed to supply 75,000 12-m pipes for the first gas pipeline of South Stream Transport’s offshore section.

German Europipe GMBH will supply half of the volume. The other supplies will come from two Russian sources: United Metallurgical Co., 35%, and Severstal, 15%. Contracts were signed in Amsterdam Jan. 29. Total value is €1 billion.

South Stream’s offshore section will extend under the Black Sea between Bulgaria and Russia. It will have four 931-km lines, with a diameter of 813 mm and wall thickness of 39 mm.

Pipe will be stockpiled at temporary bases on the coast of Bulgaria and construction will start this fall. The first offshore line is scheduled to start operations in December 2015 (OGJ Online, Oct. 21, 2013).

Gazprom said the bidding procedure for pipe suppliers was based on “extremely stringent” requirements.

“It’s worth mentioning that half of the bid was justly won by the Russian pipe plants that yet again confirmed their status of reliable high-quality pipe product suppliers,” said Oleg Aksyutin, chief executive officer of South Stream Transport BV and a member of the Gazprom management committee.

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