Trade Resources Economy LLC North European Pipe Project Will Supply Gazprom with RUB 2.96 Billion

LLC North European Pipe Project Will Supply Gazprom with RUB 2.96 Billion

Interfax reported that LLC North European Pipe Project,the main owners of which are the Rotenberg brothers,will supply Gazprom with RUB 2.96 billion worth of imported seamless oil pipe.

NEPP's competitor in the tender was LLC Pipe Innovation Technology.

The tender documentation said the purchase was to be for around 14,000 tonnes,but a NEPP spokesman told Interfax that the overall lot was reduced to around 7,000 tonnes.

Mr Alexander Muratov CEO of NEPP told Interfax that an analysis of the average price of the pipe was not appropriate here.Around half the volume is hydrogen sulfide-resistant pipe and also unique stainless steel pipe for very acidic environments(for LLC Gazprom Dobycha Atrakhan),which are only produced in two countries Germany and Japan and have very high added value.The standard black pipe would be destroyed within five days in such an environment.

Mr Muratov said that"The overall profit margin for these NEPP supplies will be within the company's average sales profit margin of around 10%to 11%."

In addition,Pipe Innovation Technology won a tender to supply 7,956 tonnes of OCTG(723 million rubles)and LLC StroyPromDetal for the supply of 134 tonnes fo OCTG(7 million rubles).

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North European Pipe Project to Supply Seamless Pipes to Gazprom
Topics: Construction