Denis%20parein

The European –Azerbaijan Society: Business Forum Arcelormittal Approach to Energy markets .

Technical products and partnerships to support local industry

Brussels, October 14, 2015 The ArcelorMittal Orbit

Denis Parein, Segment Manager Oil & Gas , ArcelorMittal Europe Flat Products

ArcelorMittal at a glance Our presence in Azerbaijan ArcelorMittal to support local industry: The TANAP project Our „steel“ presence in LNG Constructions

ArcelorMittal, World’s leading steel and mining company 222,000 employees in more than 60 countries and an industrial presence in 19 countries.

85 mio ton steel production Leader in all major global steel markets, including automotive, construction, household appliances and packaging Global Leader in the Americas, Europe and Africa and top-four producer in the CIS through local production and support : THINK GLOBAL, ACT LOCAL Leading R&D and technology with 1,300 full time researchers and a worldwide network of 12 laboratories in Europe and America

Underpinning all our operations is a philosophy to produce safe, sustainable steel

ArcelorMittal: Market leader in several market segments

Construction

Construction & Agricultural Equipment

Energy

Automotive

Home Comfort

Packaging 4

Our current presence in Azerbaijan Only steelproducer with permanent office q Office in Baku to represent high end construc/on steels and steels for Oil and Gas q Key supplier of different steels: rebar from Krivih Rih (Ukraine), prepainted steels (Belgium) for Construc/ons, Seamless pipes (Romania) for Shah Deniz q Well established supply chain to supply our customers on /me q Dedicated technical support to local customers on § Selec/on of prepainted steel for use in construc/on § Warran/es and Fire Safety cer/ficates § How to process prepainted steels § And supported by na/ve speaker mill engineer 5

ArcelorMittal for Energy from steel to solutions...

q Proximity to our customers with an efficient and op/mized supply chain network q High focus on technical support at all stages of the product life from design, engineering, industrializa/on to an exemplary aOer sales service q Backed by a world-­‐class R&D team offering the largest range of products, steel solu/ons and simula/ons q Efficient, proven steel soluAons thanks to our strong partnerships with customers

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TANAP Our Contribu/on

Trans Anatolian Natural Gas Pipeline (TANAP) How ArcelorMiTal contributed to the local Industry not only by supplying high end steels, but contributed in the technical development of local industry. .

Hot rolled Coil for Line Pipe 500kt/y and 30 Years experience

• • • • • •

Viking Offshore Flowline RWE Breagh Offshore 20” ERW Polish Gazsystem Artere L’ Adour X70

Denburry CO2 (Sour) 20” ERW Keystone XL oil pipeline 36” Algonquin Gas system 36“ HSAW Tenessee Gas Pipeline 300 36” HSAW Haynesville Acadian Pipeline 36” HSAW ETC X70 36” HSAW

GK3 Hassi R’Mel X70 48”HSAW OMV Tunisia Wasco, Egypt

Escravos Chevron 20’’ HSAW

TANAP X70 48 ” Aramco X65 sour HSAW Iraq Oil Pipeline X60 LSAW

Bawana Nangal project Sabah Sarawak Gas 36’’ HSAW

Tenaris GNEA X70 24’’

Partnerships with our customers and end users across the world from design to delivery

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TANAP Project part of the Southern Gas Corridor, a strategic highway

• Owner: Socar, Botas, BP • $9 billion investment • 16 bcm of gas • Commisioning: 2018 • 1900 km • 56 & 48 inch pipes • 1,32 mio ton steel • TANAP is part of the Southern Gas corridor to bring Gas from Shah Deniz gas field Phase 2 (BP) to Europe • 8 bcm for Turkish market + 10 bcm for European market. Designed for 30 bcm ( 3,5 % of Europe gas demand); Azerbaijan can supply upto 24 bcm with Shah deniz, Absheron and Umid/Babek. Iran and Turkmenistan interested in TANAP to connect to Europe

TANAP Project: A Challenging project

• Early involvement: as from 2012, discussions with designers • Challeging requirements: pressure, geography, climate è Pipes require a combina/on of thickness, grade, thoughness by low temperature, difficult test requirements è not all local pipe producers had the experience • 1,32 mt Project was divided over 4 Consor/ums • Partnership Toscelik-­‐ ArcelormiTal to supply 300 kt è Toscelik selected ArcelorMiTal for: 1. Quality track record in thick range & brand 2. Reliability in steel and supply chain ( Two mills supply security) 3. Technical support

TANAP Project: Success through partnership

Our objec/ve was to support Toscelik to make 19,45 mm spiral pipes aOer the earlier success to go to 14,3 mm on the Cameg project (Algeria)

1. 2 steelgrades proposed adapted to the pipemill needs è customer could choose 2. Support in opAmising producAvity and efficiency • Coilweights upto 40 t to reduce scrap and increase produc/vity 3. Extensive supply chain & technical support • R&D support on ( eg op/mising welding technology) • Almost permanent engineer at customer’s site to support (eg sampling) • Systema/c supply chain follow up through our local agency and mill

Success lies in not to work just as a supplier but as technical partner to support customers

ArcelorMiTal steels in LNG storage tanks

Structural Piping/sections

Structural Plate

Clad Piping (fire resistance)

Cryogenic pipes Plates for cryogenic: Cryelso Special rebar: Krybar

Concrete Rebars

Structural Rolled Sections

Producer and partner of innovative, high quality steel solutions with more than 20 years experience 20/10/15

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Krybar:

Unique reinforcing steels for outer wall

Product:

q Reinforcing bars with high duc/lity at low temperature ( < -­‐170°C) for concrete reinforcement. q Type of bars required by standards for LNG: BS7777 part 3 & EN 1462: 2005

Experience:

q 250 tanks in 30 years throughout the world

Worldwide Customer base:

q Prescribe by gas companies § Qatar gas, Gasco, Statoil,Enagas,

q Used by main EPC § CB&I, Vinci, Strabag, Samsung,

CryElso™:

Ni alloyed steels for LNG tanks

Product:

q 9% Nickel steel plates for LNG containment at -­‐165°C q ASTM A553 Type I and EN 10028-­‐4 X7Ni9

Experience:

q About 200 tanks in over 35 years throughout the world

Worldwide Customer base:

q Collabora/ons with all EPCs to define efficient and safest technical specifica/ons for cri/cal service

q Customer service with dedicated technical support for welding, implementa/on, prefabrica/on,…

ArcelorMittal for Energy from steel to solutions...

Thank you for your aTen/on.

If you want more informa/on:

denis.parein@arcelormiTal.com

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