fact sheet pipe supplies for the offshore pipeline supplies for the offshore pipeline the south...

South Stream Transport B.V. Head Office | Parnassusweg 809 | NL-1082 LZ Amsterdam | Netherlands Phone +31 (20) 262 45 45 | [email protected] | www.south-stream-transport.com

Fact Sheet Pipe Supplies for the Offshore Pipeline

The South Stream Pipeline System The South Stream Pipeline System spans over 2,300 km and crosses multiple countries and different geographies. It will consist of one offshore and several onshore sections. The pipeline aims at strengthening the energy security of the EU by providing a direct connection to some of the largest gas reserves in the world. South Stream Transport B.V. South Stream Transport B.V. is an international joint venture established for the planning, construction and subsequent operation of the South Stream Offshore section which will run through the Black Sea. The Company is headquartered in Amsterdam, the Netherlands.

The South Stream Offshore Pipeline The South Stream Offshore Pipeline will originate on the Russian Black Sea shore in the area of Anapa, cross the Turkish Exclusive Economic Zone in the Black Sea and land on the Bulgarian coast near Varna. The offshore pipeline will have a length of 931 km and lay at depths of up to 2,200 m along the Black Sea seabed. When fully operational, the South Stream Offshore Pipeline will consist of four pipeline strings and reach an annual capacity of 63 billion cubic metres.

Project timeline Activities at the landfalls will commence during the summer of 2014 with the preparations for micro-tunnel construction in Russia and Bulgaria. Offshore construction will start in autumn of that same year, when the first pipes will be welded together on board a pipe-laying vessel at the Port of Burgas.


The first pipeline string will be operational by the end of 2015. All four pipeline strings are planned to be in place in late 2017. Technical specificities of the pipes The South Stream Offshore Pipeline will be made from over 300,000 pieces of pipe of 12 metres each, or over 75,000 per line. These pipes are made from high-quality carbon steel (DNV SAWL 450 SFDU grade) and weight some 9 tonnes each. They have been specially designed to withstand the challenging conditions of the deep Black Sea. Thick walls of high-grade steel and special coatings are used so that the pipeline can operate safely and reliably for the next 50 years. The walls of the pipeline will be made up of 39 mm of steel, which will be specially heat-treated for extra strength. The pipes closer to the shore will be coated in concrete for additional stability and protection. After the pipes are heat-treated, they are able to withstand not just the external water pressure, but also an internal pressure of 300 bar. This leaves a comfortable security margin as the maximum operating pressure will be 284 bar (at the Russian landfall). As an additional measure to protect the pipeline from corrosion, the pipe sections will be coated on the outside with a three-layer-polypropylene (3LPP) coating. Before pipes leave the factory, each one of them will be tested at high pressure by being filled with water to ensure that it is truly strong enough to be used for the construction of the South Stream Offshore Pipeline. Any unsuitable pipes are repaired or rejected. Selection of suppliers The companies selected by South Stream Transport B.V. to produce the pipes undergo a rigorous selection process to prove that they are able to meet all these requirements. To qualify as a potential supplier for South Stream Transport B.V., a company has to produce multiple samples of pipe according to exact specifications, which are judged on quality, precision and strength. During the pre-qualification process, over 100 such samples were produced and inspected. Pipe supplies Line 1 Pipe supplies Line 2

EUROPIPE (Germany) 50% Marubeni-Itochu & Sumitomo (Japan) 40%

OMK (Russia) 35% OMK (Russia) 35%

Severstal (Russia) 15% Severstal (Russia) 25%

Total value of contracts approx EUR 1 bln Total value of contracts approx EUR 800 mln The first round of tenders for companies seeking to supply the pipes for the first line of the South Stream Offshore Pipeline was completed in January 2014. Each bid was evaluated by a team of international experts to ensure the highest quality standards at competitive prices. German Europipe and the Russian companies OMK and Severstal have won this first tender. Europipe will supply 50% of the steel pipes for the first deep-water pipeline.

Offshore Pipe Specifications

• Length: 12 metres

• Diameter: 32 inch (813mm)

• Wall thickness: 39 mm

• Material: High-quality carbon

steel

• Coating: Three-layer-

polypropylene

• Operating pressure: 284 bars

• Pipes per line: > 75,000


The tender for the second string of the South Stream Offshore Pipeline was completed in March 2014 according to the same criteria as the tender for the first string. Contracts were awarded to Japanese pipe maker Marubeni-Itochu & Sumitomo for the supply of 40% of the pipes, to Russian companies OMK and Severstal for the supply of 35% and 25% of the pipes respectively. The life of the pipes after production Following production, the pipes will be brought to storage yards at the harbours of Varna and Burgas in Bulgaria. From there, they will be transported by ship directly to a pipe-laying vessel, which will work round the clock to lay the pipeline. The pipes are connected to form one continuous string on board the pipe-laying vessel with the use of a special machine that welds them together with great precision. Each weld will be scanned with ultra-sound to detect any possible defects in the welding joint. The joints are then protected against corrosion with a special polypropylene coating before they are lowered onto the seabed. The pipe-laying vessel, which can lay up to 2km of pipe per day, will edge across the Black Sea adding new sections to the pipe string as it moves.

fact sheet pipe supplies for the offshore pipeline supplies for the offshore pipeline the south...

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