OMK to deliver 745 km of large-diameter pipe for Nord Stream 2

Nord Stream 2 announced the award of delivery contracts for pipe on March 11, 2016. The pipe (internal diameter of 1,153 mm, wall thickness of 30.9 mm and 34.6 mm) with a three-layerexternal and flow internal coating will be manufactured at the Vyksa Steel Works (VSW, an OMK subsidiary in the Nizhniy Novgorod Region). As required by the contract, OMK will complete all pipe deliveries in 2016-2018. Pipe shipments are expected to commence in September this year.

Nord Stream 2 CEO Matthias Warnig and OMK Deputy Chairman of the Board Vladimir Markin put their signatures to the document.

“We are happy that, yet again, OMK has been selected to participate in a major international project. This was made possible largely by long-term extensive investments into technology upgrades at the Vyksa Steel Works, by construction of its proprietary heavy plate mill, and by excellent team work within the company. We delivered over 486 km of pipe to the Nord Stream 1 Pipeline in 2008-2011. At the time, OMK was the first and only Russian company selected for the project. When preparing for the new tender, we used previous delivery experience, upgraded the production facilities, improved technology. Today, we also have the capability to produce pipes from our own heavy plate mill. All of this will help us execute the order for this project of importance to both Europe and Russia with impeccable quality and on schedule”, comments OMK Deputy Chairman of the Board Vladimir Markin.

Vyksa Steel Works integrated the technology to make large-diameter pipe for offshore pipelines in 2006-2007. The Company became Russia’s and CIS’ first DNV-OS-F101-certified pipe manufacturer, DNV-OS-F101 being the global standard for offshore oil and gas pipelines and extra-stringent requirements on pipe quality to improve the overall operational reliability of offshore pipeline systems.

Over the past few years, OMK has manufactured and delivered pipe for a number of offshore oil and gas pipeline projects, such as Nord Stream Lines 1 and 2, gas pipelines at Baydarata Bay, Jubga-Lazarevskoye-Sochi, Sakhalin-Khabarovsk-Vladivostok, as well asthe Varandei Oil Terminal on the White Sea

The Nord Stream 2 project will build on the success of the Nord Stream gas pipeline from Russia to Germany via the Baltic whose first line was commissioned in 2011 and the second one in 2012. Nord Stream 2 will construct a separate transport system largely parallel to the existing lines through the Baltic Sea, doubling the transport capacity along the Northern route. The project is being implemented by Nord Stream 2 AG which is a consortium that will design, build, and subsequently operate two additional gas linesacross the Baltic. A shareholder agreement was signed by the Gazprom and the German energy companies E.on and Basf/Wintershall, the Dutch-British Royal Dutch Shell, ОMV of Austria, and the French Engie.