Magnitogorsk Iron & Steel Works (MMK) and ChelyabinskRegionGas (on behalf of RAO Gazprom) signed a long-term agreement on the supply of natural gas. The agreement, signed by MMK’s Commercial Director Viktor Kutishev and GD of ChelyabinskRegionGas Yuri Fisher, is going to be valid for five years. According to the contract, MMK is to receive 3 billion cubic meters of gas annually.
Mr. Kutishev says the agreement makes the company feel positive that their projects (already planned out through 2012) are sure to get guaranteed power resources. Then, it also signifies an important step in the development of partnerships with suppliers. Early this year, the enterprise also signed a ten-year contract with the supplier of iron ore and a five-year one with the supplier of baking coal. As for Gazprom, it signed an agreement with MMK in August 2007; this provided for delivery of metal goods and steel pipes for Gazprom, including large-diameter pipes produced with the help of MMK’s plate mill 5000.


According to Mr. Fisher, this agreement is valuable for the metallurgical enterprise, the gas supplier, and Chelyabinsk Region. ‘This agreement shows we are all hoping for a long-term partnership, stability, and guaranteed supply of gas. MMK is the region’s largest natural gas consumer as well as our important strategic partner, so, even if there is some shortage of natural gas, we’ll do our best to make sure they can still produce metal goods,’ he said.