Nord Stream Decides on Second Pipe Tender, Nord Stream

Release Date: 2010-01-22

Nord Stream will commission Europipe (Germany), OMK (Russia) and Sumitomo (Japan) with the supply of 1 million tons of steel pipes for the construction of the second pipeline of the Nord Stream project. The contract value is approximately 1 billion euros of which German Europipe will be awarded 65 percent, the Russian pipe company OMK 25 percent, and Japanese Sumitomo 10 percent

The tender award for the second 1,220 kilometres gas pipeline from Vyborg in Russia to Lubmin in Germany will ensure timely delivery of the pipes in line with the logistic requirements of the Nord Stream project. The decision was made by the Shareholder’s Committee today following thorough evaluation of bids from German, Japanese and Russian companies.

“We are happy to have Europipe and OMK, the suppliers of the first pipeline, as well as Sumitomo, a newcomer to our project, on board. Sumitomo has a solid track record in offshore projects,” says Henning Kothe, Project Director at Nord Stream. “With 1 billion euros, the total volume of the contracts is below the price level of the first line reflecting the current market development of increased competition and more available capacity. Three times the amount of steel pipes required was quoted.

Type:	NORMAL
Company:	Nord Stream
Country:	Switzerland