Severstal's Izhora Pipe Mill, which specializes in large diameter pipes production using strip produced by Severstal's Cherepovets Steel Mill, and Gazprom have signed a long-term scientific and technical cooperation agreement.

The program scheduled for 2012-2016 will focus on production of tubular goods for deep-water sea pipelines, development of rolled products and pipes to transport hydrogen sulfide gas, pipes for areas of active tectonic faults.

Manufacturing of high-quality pipes for projects on Yamal peninsula, in Eastern Siberia and the Far East will also be the part of the program.

Scientific and technical cooperation will be realized on the basis of Izhora Pipe Mill with involvement of best-in-class specialists and state-of-the-art equipment. The Center for Competence Development in strip and tubes, one of the leading Russian scientific centers, will be used for strip research.

Cooperation with the leading scientific research institutes and the Center’s dedicated approach are the keys to focus on the most complicated scientific and technological questions, incl. the development of new strips with unique characteristics.

"Utilization of technical, scientific, organizational and intellectual potential of Severstal’s leading divisions and experience in producing ultra high strength pipes will enable the company to move to a new level in construction and operation of main gas pipelines," noted Alexander Grubman, CEO of Severstal Russian Steel.

Mr. Grubman has indicated that Severstal’s competitive advantage to provide full production chain from raw materials to large diameter pipes is also the important contributor to develop the unique products for oil and gas industry.

Izhora Pipe Mill is one of the first facilities in Russia and CIS to produce ultra high strength pipes made of high strength steel K65 on a commercial scale. Pipes are supplied to build the section of "Bovanenkovo - Ukhta" main gas pipeline system. The section is notable for severe weather conditions with low temperatures.

In 2010, employees of the facility have been honored with the Russian Government science and technology award for development of ultra high strength pipes made of high strength steel K65.

Gazprom is a global energy company and a reliable supplier of gas to Russian and foreign consumers. It owns the world's largest gas transmission network - the Unified Gas Supply System of Russia with a total length of over 161,000 km.