Gazprom discussed opportunities of cooperation with Russian pipe companies

Yesterday, Alexander Ananenkov, Gazprom’s Management Committee Deputy Chairman, had a working meeting with representatives of Russian pipe companies. The meeting was initiated by Gazkomplektimpex, a Gazprom’s 100% subsidiary, Pipe Metallurgical Company and United Metallurgical Company.

The aim of the meeting is to access the cooperation outlook between Gazprom and domestic pipe companies, in line with Gazprom’s investment and gas production increase plans and in accordance with the Comprehensive Program on Reconstruction and Technical Re-equipment of Gas Transmission Facilities Up To 2006.

Mr. Ananenkov stressed that Gazprom intended to continue focusing on Russian pipe manufactures. In this regard, Gazprom’s Management Committee Deputy Chairman was first interested in the technological and technical capabilities of Russian pipe manufacturers and their plans on arranging new production lines. He highlighted that, since Gazprom’s main task was to use world-class quality pipes, than the Company would forge its relations with pipe manufacturers based on the manufacturers’ readiness for technical refurbishment.

As Mr. Ananenkov informed that Gazprom would have to meet its demand for large-sized thick-walled pipes, casings with tight thread connections, corrosion-resistant pipes and some other products which are not produced by Russian companies for the time being, through import deliveries. From 2005 onwards, Gazprom intends to fully meet its demand by placing orders with Russian pipe companies.

Representatives of the companies confirmed their readiness to invest their own and attracted funds in modernizing existing and constructing new capacities.

Based on the meeting results, a Memorandum on Developing Cooperation Based on Production of Advanced Pipes In Order to Replace Import Deliveries by 2010 will be signed.

Information Directorate, OAO Gazprom