voestalpine awarded major contract for Nord Stream 2 pipeline project

After having supplied 170,000 tonnes highest-quality linepipe plates for the first part of the offshore gas pipeline in the Baltic Sea between 2008 and 2010, the Group will now produce several hundred thousand tonnes for Nord Stream 2. The order quantities significantly exceeded expectations, which makes this order the largest one won by voestalpine Grobblech GmbH in the company's history.

Nord Stream is a 1,200 km offshore pipeline transporting natural gas from the Yuzhno-Russkoye natural gas field and neighbouring fields in Siberia via the Baltic Sea to Germany. As such, it plays a major role in securing Europe’s access to natural gas supplies. Between 2008 and 2010, voestalpine Grobblech GmbH, a company belonging to the voestalpine Group’s Steel Division, via its partner OMK, a Russian pipeline specialist and long-term voestalpine partner, supplied 170,000 tonnes of highest-quality linepipe plates for two Nord Stream lines which were completed in 2012.

As this pipeline is running almost at full capacity, having transported around 40 billion cubic meters of gas to the EU through both lines in 2015, construction of Nord Stream 2 with two further pipelines is to go ahead. With the biggest contract in its history voestalpine Grobblech GmbH has now secured the supply for several hundred thousand tonnes of special plate for these pipelines, which will again be handled together with strategic partner OMK between August 2016 and February 2018. OMK has most recently won 33 percent of the total order volume for Nord Stream 2 in a tender issued by the operating company. “In view of today’s highly competitive market environment for investment in the oil and gas industry, this major contract is extremely welcome,” says Herbert Eibensteiner, the Member of the Management Board of voestalpine AG responsible for the Steel Division. “It proves once again that voestalpine is seen as a reliable partner when it comes to highest-quality special products for technologically demanding pipeline projects.”

Constantly solid capacity in the pipeline business

In 2015, a contract for 95,000 tonnes of linepipe plates for a natural gas pipeline in the United Arab Emirates ensured solid capacity in the heavy plate business. This followed deliveries for the Brazilian Rota 3 pipeline project which largely ensured full capacity utilization. Here voestalpine supplied 117,000 tonnes of linepipe plates for the deep-ocean pipeline to one of the world’s largest oil fields near Rio de Janeiro.