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Gazprom & Russian Pipe Producers to Adopt Formula Pricing for Pipe Fittings

Source: www.gulfoilandgas.com 12/26/2016, Location: Asia

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The Gazprom headquarters hosted today a signing ceremony for additional agreements between the Company and leading pipe producers. The documents, which introduce formula pricing for pipe fittings, expand the scope of the earlier agreements on formula pricing for large-diameter pipes.

The additional agreements were signed by Alexey Miller, Chairman of the Gazprom Management Committee, Anatoly Sedykh, Chairman of the Management Board, United Metallurgical Company (OMK), Andrey Komarov, Member of the Board of Directors, Chelyabinsk Pipe Rolling Plant, and Alexey Mordashov, Chairman of the Board of Directors, Severstal.

The pricing formula for pipe fittings will be used starting January 1, 2017, to calculate the initial (maximum) prices of such products during tenders for suppliers organized by Gazprom.

Alexey Miller and Ivan Shabalov, Vice President and Chairman of the Pipe Producers Association Coordinating Council, inked the Coordination Agreement on the INTERGAZCERT voluntary certification system, which had been created by Gazprom on the basis of best international practices.

Pursuant to the document, the Pipe Producers Association is designated as the central body for pipe products within the INTERGAZCERT system. The Association will cooperate with Gazprom on voluntary certification of pipe-related products, works, services and management systems with the purpose of, among other things, improving the competitiveness of domestic pipe producers and ensuring mutual recognition of certificates issued by INTERGAZCERT and other Russian and international certification systems.

“Mutually beneficial cooperation between Gazprom and domestic pipe producers is consistently expanding. Looking back at 2016, we are happy to report that the share of Russian pipes in the Company’s procurements has reached the highest possible level: 100 per cent. Congratulations!” said Alexey Miller.

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