OMK, Europipe and Sumitomo win Nord Stream’s second pipe tender

Friday, 22 January 2010 17:28:27 (GMT+3)   -  
SteelOrbis News

A total of one million mt of large diameter high-pressure-proof steel pipes for the construction of the second pipeline of the Nord Stream Project will be supplied by such pipemakers as German-based Europipe, Russia-based OMK, and Japan-based Sumitomo, the consortium for construction and operation of the planned submarine pipeline Nord Stream AG has announced. The total contract value is approximately €1 billion.

Accordingly, following thorough evaluation of bids from German, Japanese and Russian companies, Europipe was awarded 65 percent of the tender, OMK got 25 percent, and Sumitomo ten percent of the contract. In 2007, Europipe and OMK also won the tender to deliver pipes for the first pipeline of the Nord Stream Project.

 "According to the contracts for the second line, which are expected to be signed within the next weeks, Nord Stream secures the pipes at the current price level," reads the company's statement, adding that the delivery of pipes is scheduled to start in May 2010.

"With €1 billion, the total volume of the contracts is below the price level of the first line and reflects the current market development where competition has increased and more capacity is available. Altogether, three times the amount of steel pipes required was quoted," stated Henning Kothe, project director at Nord Stream.

The tender award for the second 1,220-kilometer gas pipeline from Vyborg in Russia to Lubmin in Germany secures timely delivery of the pipes in line with the logistic requirements of the Nord Stream project.

The construction of the first line of the Nord Stream Pipeline is scheduled to commence on April 1, 2010, while the construction of the second line is planned to start in spring 2011. The consortium plans to transport 55 billion cubic meters of gas per year when completed in 2012.

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