Bloomberg News

Gazprom Says Pipe Demand to Double This Year on New Construction

September 16, 2010

OAO Gazprom’s demand for steel pipes will more than double this year as the state-run natural gas export monopoly builds trunk links to supply Europe and regions in Russia, the company said today on its website.

Annual demand for large-diameter pipes will stay between 1.5 million and 2.6 million metric tons, Igor Fyodorov, general director of Gazprom’s supply unit, Gazprom Komplektatsiya, said in a corporate magazine.

The Moscow-based producer, which supplies about a quarter of Europe’s gas needs, is building the Nord Stream pipeline from Russia to Germany under the Baltic Sea. The company also plans to complete a domestic pipeline from Sakhalin Island next year to meet the government-assigned deadline to supply local consumers in Russia’s Far East. A pipeline from Yamal Peninsula is being built to unlock the potential of the gas-rich province in the Arctic.

Gazprom Komplektatsiya bought 843,000 tons of pipes from Russian pipemakers last year, or about 95 percent of total purchases. Large-diameter pipe purchases totaled 809,000 tons.

For the Sakhalin-Khabarovsk-Vladivostok link, Gazprom will complete pipe supplies this year, with “a small portion” of the pipes to be delivered from Japan, Fyodorov said.

To contact the reporter on this story: Anna Shiryaevskaya in Moscow at ashiryaevska@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net


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