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Severstal to Supply Pipes for the Power of Siberia Project

Source: www.gulfoilandgas.com 6/20/2013, Location: Asia

Alexey Mordashov, Severstal's CEO, announced at a meeting of representatives from Russian pipe manufacturers hosted by Gazprom at the Izhora Pipe Mill that OAO Severstal's St. Petersburg-based operations, the Izhora Pipe Mill and Mill 5000 at the Cherepovets Steel Mill's 3rd Sheet-Rolling Shop, is ready to supply pipes for Gazprom's major new gas transmission project, called Power of Siberia.

The meeting was attended by Alexey Miller, Chairman of the Management Committee of OAO Gazprom, as well as representatives from a number of Russian pipe manufacturers. The discussion at the meeting was focused on the capabilityof large-diameter pipe manufacturers to produce bespoke pipes for the South Stream and Power of Siberia main gas pipelines as well as reviewing a leading-edgesystem to produce rolled sheet and large-diameter pipes.

Alexey Mordashov, CEO of Severstal, commented: “The Izhora Pipe Mill has a history of successful cooperation with Gazprom in developing innovative,leading-edge products, including supplying the Power of Siberia mega-project.Severstal’s technological excellence has allowed us to efficiently design and implement bespoke pipe product manufacturing technology for this major project.”

The Yakutia-Khabarovsk-Vladivostok pipeline, recently renamed the Power of Siberia project, runs from the Chayandinsky oil and gas condensate field to Vladivostok and will be completed by 2017. The area of land covered by the system is highly seismic, and therefore requires specialty pipes that will ensure safe and reliable gas transmission.

The pipes for the project were developed as part of a long-term development program [by Severstal] running from 2012 to 2016. The program has been focused on the manufacturing of pipe products for deep sea pipelines as well as the establishment of production facilities for metal rolled products and sulfurous gas pipes and pipes spanning active tectonic faults.

In addition, Severstal is currently undergoing a certification process for its technical capabilities to tender for a contract to supply pipe products to be used in the construction of the sea section of the South Stream gas transmission system.

The Izhora Pipe Mill is among Russia’s and the CIS’ foremost commercial producersof ultra-strength pipes from high-strength steel grade K65. These pipes are being supplied for the construction of the Bovanenkovo — Ukhta section of the main gas pipeline system. This section is notable for the harsh weather conditions it endures including extreme low temperatures. In 2010, the Izhora Pipe Mill’s staff and employees were awarded a scientific and technical prize by the Russian Government the development of ultra-strength pipesfrom high-strength steel grade K65.

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