Gazprom and Russian pipe firms to continue work on import substitution

Thursday, 11 February 2016 17:44:18 (GMT+3)   |   Istanbul
       

At a meeting held on February 9 with the participation of the Russian Pipe Producers Association and Russian pipe producers United Metallurgical Company (OMK), Severstal, TMK, and Chelyabinsk Pipe Rolling Plant, Russian gas monopoly Gazprom announced that it has initiated the use of a corporate standardization system in order to accelerate the certification of import-substituting products to be used at the company's facilities.

The meeting also discussed a formula-based pricing approach to pipe products. It was noted that this pricing mechanism had proven successful over the years of application due to the high predictability of calculations. The changed market conditions have required an updating of the pricing formulas, in particular, for large diameter (LD) pipes. During the meeting, Gazprom and the pipe companies also signed supplementary agreements on price formulas for large diameter pipes. Furthermore, it was agreed at the meeting to develop a price formula for pipeline fittings.

“Gazprom jointly with pipe companies works systematically on import substitution. We improve the forms of cooperation, broaden the range of domestic equipment, and increase its share in the company's procurement procedures. Currently, 99.5 percent of large diameter pipes in Gazprom's centralized purchases are produced domestically. Our cooperation in import substitution will be developed further,” stated Alexey Miller, Gazprom CEO.

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