Russian steelmaker MMK has signed an agreement with TMK, a leading global oil and gas steel pipe producer, to apply a formula when calculating the pricing of wide hot-rolled plate.

The agreement was signed at the recent Metal-Expo 2014 exhibition in Moscow and sets out the price formula applied to steel products supplied to the end of 2015.

MMK will ship wide hot-rolled sheets to TMK's pipe plant at Volzhsky where they will be used to produce large diameter pipes for Gazprom's major Russian pipeline projectss – these include South Stream, Power of Siberia and Bovanenkovo-Ukhta.

According to MMK, the deal struck demonstrates the company's commitment to supply metal products to pipe companies producing large-diameter pipe for strategic cross-country pipelines.

Pavel Shilyaev, MMK's CEO, said: ""Following the commissioning of our Mill 5000 in 2009, it was TMK that received the first batch of the newly manufactured products. We are fully aware of the significance and scale of the projects and tasks carried out by gas and pipe companies. In response, we have been adopting state-of-the-art steel rolling technologies in line with the most advanced global standards. Reassured by the tests completed to date, we can confidently state that MMK products meet the most stringent requirements for pipeline application in extreme depths, temperatures, and aggressive environments."