Investor Presentaiton
TMK
LDP Demand in Russia
LDP demand in Russia, 2012-2023E
Booming market
'000 tonnes
3,500
3,000
2,500
15%
20%
20%
2,000
26%
1,500
31%
30%
14%
1,000
26%
54%
500
54%
44%
26%
25%
25%
30%
26%
10%
15%
11%
31%
30%
11%
20%
39%
65%
12%
13%
15%
65%
59%
64%
63%
50%
58%
56%
46%
0
2012
2013
2014
2015
2016
2017
■ Gazprom
■ Transneft
2018
■ Others
2019
2020F 2021F 2022F 2023F
Source: TMK estimates
TMK
For the next three years we expect the LDP market to be at approximately 2 mln tonnes
LDP demand in Russia is driven by nation-wide O&G projects and maintenance of the existing O&G infrastructure, with total length of Gazprom and
Transneft current pipeline network exceeding 225 thousand kilometers
Going forward, LDP demand in Russia is expected to be strongly supported by growing needs of Gazprom on the back of potential new projects, such
as: Power of Siberia-2, Bovanenkovo-Ukhta 3, Ukhta-Torzhok 3 etc.
TMK is well-positioned to participate in these projects due to efficient production and low costs, high-quality product offering and well-established
relationship with the major customers in the Russian LDP market
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