Russia’s OMK metals company still produces pipes for South Stream

Business & Economy December 11, 2014, 18:23

The company is ready to supply pipelines for the extension of the Blue Stream pipeline

NIZHNY NOVGOROD, December 11. /TASS/. Russian pipeline maker United Metallurgical Company (OMK) continues to produce pipes for the South Stream pipeline despite the cancellation of the project, press service director Stanislav Zalugovsky said Thursday without disclosing the price for the contracts.

“Vyksa Steel Works (part of OMK) still produces pipes for the first line of the South Stream pipeline in accordance with the schedule,” Zalugovsky said.

President Vladimir Putin said the South Stream pipeline project is scrapped, blaming the EU and Bulgarian authorities for failed cooperation.

Instead Gazprom will build a gas hub on the Turkey-Greece border under a new 63 billion cubic meter pipeline project.

OMK is ready to supply pipelines for the extension of the Blue Stream pipeline, Zalugovsky said.

Chelyabinsk pipe supplier ready to build pipeline to Turkey

Russian pipe maker Chelyabinsk Tube-Rolling Plant (ChelPipe) earlier said it was considering supplying the pipes planned for the terminated South Stream project to the new Turkey pipeline project.

ChelPipe bid in a tender for the construction of the third and fourth lines of South Stream’s underwater part.

Chief of the Pipeline Producers’ Association Ivan Shabalov said Russia’s steel pipe manufacturers hope that all their products originally meant for the South Stream project will be redirected to the new gas pipeline project.

“The South Steam’s infrastructure in Russian territory is absolutely adjustable to the plan of a pipeline to Turkey, Shabalov said. “The Turkish route will entail no losses for Gazprom or for the pipe manufacturers.”

“If a new contract for supplying 63 billion cubic meters of gas a year to Turkey is concluded, that means that the Russian corridor and the Russian stretch of this project will be absolutely identical to South Stream’s," he said.

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