The company (HRTR: SELL) will supply 400 ths mt of pipe to Gazprom for the construction of the North European Gas Pipeline (NEGP). The pipes will be used to lay the land portion of the line. Concorde Capital: In 10M05, Khartsyzk Tube produced 468.6 ths mt of pipes, up 27% yoy. Gazprom?s huge order of 400 ths mt for in 2006 will help HRTR to enjoy another successful year, unless Gazprom breaks the agreement and switches to a Russian pipe producer. However, we think this is unlikely, as the quality of pipes HRTR is to supply for the NEGP project, and their price competitiveness naturally make HRTR the best option for Gazprom. The pipes specified in the agreement will stand the pressure of 120 MPa, more than the 100 MPa required, and have an anti-corrosion coating which will extend their lifespan.