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|International Tender For UO Pipes For 'South Stream' To Put On Stream|
A tender for the South Stream gas pipelines from the Caspian Sea to the south of Europe via the Black Sea is predicted to put on stream. The project is the biggest one in the world to use 4,600 thousand tons of UO steel pipes. |
One of the pledges of president election by Prime Minister Putin who returns to President in May mentioned to realize the South Stream gas pipeline. Accordingly, such tender begins to show inclination to move, and it is reported that PM Putin instructed Gazprom to accelerate to purchase UO pipes.
The submerged 4 pipelines are installed in the Black Sea. For those, UO pipes of 2,800 thousand tons are used. UO pipes of 700 thousand tons per line are to be used by simple arithmetic. Until now, only EUROPIPE could supply for one line as a single company. Its production capability is said to be 1 million tons a year so that the company would be able to proceed with negotiations easily. In case of the Japanese mills, they could not cope with EUROPIPE without alliance of them.
However, in October, Nippon Steel and Sumitomo Metal Industries merge, and 'Nippon Steel & Sumitomo Metal' starts. After consolidation, the new company's capacity of UO pipes becomes 900 to 1,000 thousand tons a year, and is able to receive whole order quantity of one line pipe as a single company against EUROPIPE.
The details of the tender are not determined yet but it is said that May onward when PM Putin assumes the position of President, an international tender is invited in July by Gazprom, an informal order is placed in September, a formal contract is conclude in November, and deliverr of pipes starts as early as next year. As there is a plan of the Nabucco gas pipeline by the EU countries as a rival plan, Mr. Putin seems to intend to have the South Stream precede.
The South Stream gas pipeline also uses UO pipes of 1,800 thousand tons for onshore places to Italy via Turkey and so on. The Japanese mills are likely to proceed with negotiations focusing on the Black Sea portion. Attention is drawn to see whether a tender is released for 4 lines in July or separated into two tenders in this and next year.
|last modified : Thu 26 Apr, 2012 [14:21]|