The Russian state-run gas monopoly Gazprom intends to double its purchases of pipes in 2010 to about 1.9 million mt from 950,000 mt in 2009 (850,000 mt in 2008), Russia's Metal Supply and Sales magazine has reported, citing the chairman of the coordination board of Russia's Pipe Producer Association, Ivan Shabalov.
Accordingly, the significant growth in Gazprom's pipe purchases is due to the start of construction of its major gas pipeline projects, such as Bovanenkovo-Ukhta, Pochinki- Gryazovets, Ukhta-Torzhok, and Sakhalin-Khabarovsk-Vladivostok. In addition, in 2008-2009, because of the crisis Gazprom's pipe purchases were about 700,000 mt below expected levels, with a shortfall of 250,000 mt in 2008 and of 450,000 mt in 2009.
In the current year up to July 1, the amount of pipes shipped to Gazprom amounted to about 750,000 mt, of which only 80,000 mt were imported. In 2002 the share of pipe imports in Gazprom's overall pipe purchases amounted to 65 percent, while currently the share has decreased to three percent. However, the share of imported strip which is bought by Russian pipemakers is still high and amounts to 48 percent.
In H2 2010, Gazprom is to acquire about one million mt of pipes from Russian manufacturers, of which 45-50 percent will be bought from OMK, about 25 percent each will be purchased from TMK and Izhora Pipe Mill, while from ChTPZ Group, which in July will commission its new pipe mill, Gazprom is to buy 50,000 mt of pipes.
In addition, Mr. Shabalov said that at the last meeting of Gazprom's board of directors the equity participation of Russian pipe producers in international gas transmission projects of the group was decided in proportion to Gazprom's share in these projects.