Russia's TMK, a major global supplier of steel pipes for the oil and gas sector, has stated that the market of large-diameter (LD) pipes in Russia will see a slump this year. TMK, like other steel pipe makers, has seen decrease in sales this year in Russia since its main customers, Gazprom and Transneft, have reduced purchases after completing large construction projects.
Dmitry Pumpyansky, TMK's chairman and majority stakeholder, foresees that LD pipes purchases by Russian customers will fall by more than a third this year to between 1.7 and 1.8 million mt from 2.8 million mt in 2011.
Meanwhile, the company expects to see a certain revival at the end of the year. In particular, supplies for the inland part of the South Stream pipeline and the second phase of the Bovanenkovo-Ukhta pipeline will start in the fourth quarter. Also, Gazprom is due to launch the giant Arctic Bovanenkovo field in coming months.