South Stream_contract

South Stream Transport has contracted three pipe mills worth about €1bn to supply over 75,000 steel pipes for the first line of the South Stream Offshore Pipeline.

Under the contracts, Germany-based Europipe will supply 50% of the pipes, while Russia’s OMK and Severstal’s Izhora Pipe Mill will supply another 35% and 15% respectively.

Made up of four parallel pipelines of 931km each, the South Stream Offshore Pipeline will have a diameter of 32in and steel walls 39mm thick.

For the first pipeline, the contracts cover production of over 75,000 steel pipes of 12m, and a tender for the second pipeline is on the way, with the aim of awarding the contracts in the first quarter of 2014.

South Stream Transport commercial director Grégoire Richez said: “We witnessed the production and tested samples from each company that participated in the tender and each bid was evaluated by a team of international experts.

“The first offshore pipeline is scheduled to come on-stream by the end of 2015.”

“As a result, we could contract sufficient quantities of pipe at competitive prices, while ensuring that our high quality standards are met.”

The company launched a tender procedure for the supply of pipes for the first line in June 2013, which involved pipe mills from Europe and Asia.

In summer 2014, the first pipes will be delivered to storage yards at the Bulgarian coast of the Black Sea.

Prior to leaving the factory floor, each pipe segment will be tested with water at high pressure in order to ensure it is of sufficient quality to be used for the offshore pipeline.

Construction of the landfall of the South Stream Offshore Pipeline is expected to commence in summer 2014, and upon delivery and stockpiling of pipes at the Black Sea coast, offshore construction will start in autumn 2014.

The first offshore pipeline is scheduled to come on-stream by the end of 2015.

Image: From left to right: Europipe CEO Dr Michael Gräf, South Stream Transport CEO Dr Oleg Aksyutin, and Europipe managing director Alexander Soboll. Photo: courtesy of South Stream Transport B.V.