Sanctions bringing Siemens turbine production to Russia

Localizing will attain 70% by 2020.


Sanctions – such sanctions: Siemens is ready to localize the production of turbines in Russia 100%

March 07, 2019 The German company Siemens is ready to 100% localize the production of high-capacity gas turbines in Russia, the company reported to RNS.*The company explained that this would be possible by 2025, subject to an economically reasonable number of orders in the coming years. Siemens added that currently the 187 MW SGT5-2000E turbine is localized a little more than 60% at Siemens Gas Turbine Technologies near St. Petersburg.
“Now the company is engaged in the further qualification of Russian suppliers of gas turbine components. “We are ready to localize it by 70% by 2020, and by the end of 2024 – up to 100%,” noted the company. Siemens stressed that the concern is considering the possibility of shortening this period if it is understood that regulatory requirements will allow the company to participate in the program for the modernization of power plants in the Russian Federation.The company added that, in addition to the production of gas turbine technology at Siemens, the service of SGT5-2000E and SGT5-4000F turbines was localized.

Previously, Siemens estimated the development time for Russian companies’ own high-power turbines would be at least five years.

We add that Siemens signed on to produce compressors for natural gas at the Yamal Peninsula just last month. Here is the RNS* news release:

Arctic LNG 2 and Siemens Sign Equipment Supply Contract

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 Moscow, 1 February 2019. PAO NOVATEK (“NOVATEK” and/or the “Company”) announced that Arctic LNG 2 (the “Project”) and Siemens signed a contract on compressor equipment for three liquefaction trains of the Project.

The scope of supply under the contract includes three feed gas compressors and six boil-off gas compressors. The document also provides for localizing the equipment fabrication for the Project’s third train in Russia.

 “Siemens and NOVATEK have a successful working relationship as they supplied gas turbine generators and boil-off gas compressors for our Yamal LNG plant.” noted Alexander Fridman, NOVATEK’s First Deputy Chairman of the Management Board. “Our next project, Arctic LNG 2, will utilize new technological solutions and employ domestic manufacturers. The supply contract envisages new prospects for localizing the compressor equipment fabrication for the LNG industry, which is consistent with our strategic aim of creating and developing an LNG Center of Excellence in Russia.”


*RNS is for Regulatory News Service, London Stock Exchange.

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