Severstal : makes first delivery of large-diameter pipes to Brazil

July 21, 2021

PAO Severstal has completed a delivery of large-diameter pipes (LDPs) to Brazil for the first time. In a first for Severstal's pipe business, the products will be used for a liquified natural gas (LNG) project abroad, the construction of Barcarena LNG.

The LDPs have a diameter of 508 mm, wall thickness of 12.7 mm and length of 11.5-11.8 m. They were manufactured according to the API 5L PSL2 steel standard of strength category X65M at the Izhorsky Pipe Plant (ITZ, part of Severstal's Russian Steel division), located at the Company's production site in the Kolpinsky district of St. Petersburg. This order contained additional requirements for offshore pipelines, which the plant completed successfully. The order was shipped from the port of St. Petersburg to the Brazilian port of Vila do Conde.

In pipe production, Severstal uses its own rolled metal produced at Mill 5000 at the Company's sheet rolling shop located on the same industrial site as ITZ, in the Kolpinsky district of St. Petersburg. Access to its own raw material base, steel making and rolling production facilities allows Severstal to have full control over product quality at each stage of production and offers flexibility in meeting customer requests.

Maxim Starikov, Deputy Sales Director for the Energy sector (Export Markets) at Severstal, commented:

'Our customer base is expanding, and Izhora Pipe Plant already has experience supplying large-diameter pipes to South America. Severstal's vertically-integrated structure allows us to quickly meet a customer's orders, and with the Izhora Pipe Plant located so close to the port of St. Petersburg, we are easily able to deliver our products all over the world. These competitive advantages set us in good stead to build strong, long-term relationships with our international customer base.'

Notes for Editors:
Barcarena LNG provides for the construction of a floating regasification plant with capacity of 15 million cubic meters per day on the Para River, near the port of Vila do Conde. Natural gas from the terminal will be transported to customers in the Barcarena industrial zone and for the needs of the Celba thermal power plant with electricity generation capacity of 605 MW. It is expected that the project will be implemented and put into operation in 2022.