OREANDA-NEWS.  September 29, 2014. The South Stream Transport company has certified large-diameter pipes produced by the United Metallurgical Company (OMK) from slabs supplied by NLMK.

This certificate allows for the use of pipes produced from NLMK steel for the underwater part of the South Stream gas pipe.

In 2012, OMK signed a long-term contract with NLMK, Russia’s leading steelmaker, for the supply of slabs produced at the Lipetsk production site. In November 2013, the companies signed a Long-Term Cooperation Agreement. According to the Agreement, NLMK will supply more than 2 million tonnes of steel slabs between 2014–2016 that feature superior chemical composition and steel structure standards, and in dimensions that are unique for the Russian market. OMK has purchased over 1 million tonnes of steel slabs for the production of large-diameter pipes under the Agreement.

NLMK Group President Oleg Bagrin said:

“NLMK Group is focused on producing high-quality steel products, including those with unique properties that allow our customers, the consumers of these products, to boost their competitiveness not only in Russia, but also internationally. This long-term contract with OMK is a great example of such mutually beneficial and successful cooperation.”

OMK Group President Vladimir Markin added:
“The South Stream Transport certificate for pipes produced entirely from Russian steel was the logical result of our work with NLMK who have advanced equipment and wide opportunities for the production of special “pipe” slab grades and dimensions. If we win new South Stream Transport tenders, this certificate will allow us to fully localize pipe production in Russia, thus mitigating risks and logistics costs. Our total demand is up to 1 million tonnes of steel slabs per year. Purchasing them in Russia will undoubtedly contribute to the development of the country.”

In 2013, NLMK successfully passed an audit by the Norwegian classification society Det Norske Veritas (DNV) as a potential supplier of slabs for the production of large-diameter pipes needed for the Nord Stream Extension (NEXT) project.