7 Nov 2018 18:04

TMK agrees 21-bln ruble deal to supply pipes directly to Gazprom

MOSCOW. Nov 7 (Interfax) - TMK will supply 21 billion rubles worth of large-diameter pipes to Gazprom .

Several industry sources told Interfax that the Russian gas giant had reached preliminary agreement with TMK to sign a direct contract in November for the supply of pipes to expand the Sakhalin-Khabarovsk-Vladivostok trunk pipeline.

The deal is for the delivery of 255,010 tonnes of large-diameter pipes for 21.447 billion rubles as a purchase from a single supplier. The term of the contract is until April 2020. Gazprom is not disclosing the potential supplier.

Gazprom announced and immediately canceled five tenders in July for the supply of 255,000 tonnes of LDP. At that time the starting price for the contract was slightly higher at 22.684 billion rubles. The tender was cancelled after a week with no explanation given.

The price of the new direct contract may therefore be 5.5% lower than the starting price for the cancelled summer tender.