The Russian pipe producing company United Metallurgical Company (OMK) has announced that in May-June 2009 it will begin production and shipments of large diameter (LD) pipes for Russian state-owned oil transportation company Transneft for the construction of Baltic Pipeline System-2 (BPS-2), the second trunk line of the Baltic Pipeline System.
Under the terms of the contract, in 2009-2010 OMK is to deliver to Transneft 227,677 mt of LD pipes of 1,076 mm in diameter, of which 106,712 mt will be supplied in 2009, and 120,965 mt in 2010.
The shipments of LD pipes for the construction of BPS-2 will be carried out by OMK and three more subcontracted companies, including ChTPZ's Uraltrubostal, TMK and Severstal's Izhora Pipe Plant.
The Baltic Pipeline System (BPS) is designed for transportation of Russian oil in a northwest direction for the European and US markets. The construction of BPS-2 will allow Russia to transport oil without the contribution of transit countries.