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. Last Updated: 07/27/2016

Europipe, OMK Win Baltic Deal

Germany's Europipe and Russia's OMK have won contracts to supply pipes for the Nord Stream undersea gas link from Russia to Germany, Nord Stream said Tuesday after awarding the deal, which could be worth 2 billion euros ($2.82 billion).

Nord Stream, led by Gazprom, said the pipes contracts for the project's first phase would be signed in October, and that Europipe, one of world's biggest pipe makers, would deliver 75 percent of them.

OMK's Vyksa plant would supply the remaining 25 percent of the pipes for the group, which also includes Germany's BASF and E.On.

The Nord Stream pipeline, which would take gas under the Baltic Sea, is due to begin pumping 27.5 billion cubic meters of gas per year to Europe in 2010, with a second pipeline later doubling capacity to 55 bcm.

The project, which would bypass Ukraine, Poland and other transit energy states, has dismayed countries that have relied on cheap Russian energy supplies and transit revenues.

Nord Stream did not name the other contenders at its tender, apart from OMK and Europipe -- a joint venture between Salzgitter and German steelmaker Dillinger Huette that is 51 percent owned by Arcelor, which has been acquired by Mittal .

Nord Stream did not disclose the value of the deal but said some 1.1 million tons of steel would be needed to build the first phase of the pipeline.