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16th MOSCOW INTERNATIONAL OIL AND GAS EXHIBITION MIOGE 2019
23-26 April 2019 • Moscow • Crocus Expo

Russian oil & gas localisation case study – Russian Gas Turbines

News
General Electric is no stranger to localised oil & gas equipment manufacturing in Russia. In our latest case study, MIOGE examines how it is skirting sanctions with its Russian Gas Turbines joint venture.
Russian oil & gas localisation case study – Russian Gas Turbines


Localised oil & gas equipment production in Russia with Russian Gas Turbines

 
We know that Russia is the second largest producer of natural gas in the world. Gas is a vital export commodity, which means upgrades of equipment at production and power sites is a top priority.
 
In order to keep a steady stream of quality equipment coming, and noticing a gap in the domestic market for Russia-made solutions, more companies are building in Russia, such as Russian Gas Turbines.
 
Russian Gas Turbines is a joint venture formed in 2011 between General Electric (GE) and Russia’s Inter RAO Engineering and United Engine Corporation. Its goal was to bring gas turbine production to Russia, designed to fill the market demand for quality equipment.
 
This was very much a “from the ground up” operation. A brand new, 20,000 sqm factory was set up by the partners in Rybinsk, Yaroslavl, approximately 250km from Moscow. This has allowed GE technology to be adapted to local market conditions, and improve the company’s Russian reach.
 
Russian Gas Turbines’ main product is the 6F.03 (6FA) model, which features a simple cycle output power rating of 82 MW. While it has mainly been intended for use in the power generation sector, this particular model is also suitable for use in oil and gas exploration – specifically in electricity and steam for oil extraction.
 
The joint venture’s production output is 14 turbines a year. Russian-sourced components are used during manufacturing too. For instance, domestic electrical engineering firm ELSIB provides its TF-90G-2U3 generators for each turbine – technology with a proven operational track record throughout Russia and the CIS.
 
“We are glad that GE energy equipment is supplied with high-tech components manufactured in Russia. This will bring additional benefits to our clients by reducing costs for logistics, maintenance, and by raising efficiency of production processes,” said Nadezhda Izotova, Russian Gas Turbines’ General Manager.
 

Russian Gas Turbines already delivering key project equipment

 
Since production kicked off, Russian Gas Turbines has supplied some key power plants and oil projects with machinery. The group delivered its first turbine unit – and its first produced on Russian soil – to Rosneft in October 2015.
 
In December 2015, Russian Gas Turbines inked an agreement with Kaliningrad Generation LLC (a Rosneft subsidiary) for the supply of eight 6FA turbines. Units made their way to several sites in the Kaliningrad region in 2017, as part of a greater $1.56 billion regional power plant investment programme.
 
Rosneft has so far been Russian Gas Turbines’ largest client. In addition to the above, 6FA turbines have been used for combined heat and power operations at the Lodochny, Suzunsky, and Tagulsky oil fields in Krasnoyarsk. These are sub-fields of Rosneft’s enormous Vankor operation.
 
The fact that Rosneft chose 6FA turbines in Krasnoyarsk also highlights something those considering localisation options must take into account: the Russian weather.
 
Vankor lies in the North of Krasnoyarsk, close to the Arctic Circle, which means temperatures plummet come winter. Equipment in use there must be rugged, and able to cope with fierce cold. 6FA turbines, according to Rosneft, are able to cope with these harsh climes and continue year-round operations – ideal for Russia’s colder reaches.
 
By paying attention to the above, as well as identifying a gap in the market and reacting to local market demands, General Electric and partners are the model for localisation in Russia.
 

Succesful joint ventures point towards future oil & gas equipment supplying success

 
By parenting with a Russian firm, General Electric has a significant advantage over competitors when it comes to supplying Russia’s oil & gas market with in-demand solutions. With their already existing knowledge of Russian manufacturing conditions, procedures and language,  partnering with Inter RAO Engineering and United Engine Corporation been a boon for GE.
 

Your guide to localisation in Russia

 
If NOV-Kostroma has inspired you, and you’re thinking about moving production to Russia, then download our practical guide on how to get started. Inside, you’ll find plenty of practical information on how to begin manufacturing essential oil & gas equipment in Russia, as well as a look at the benefits Russian-based production can bring.
 


MIOGE 2019: Russia’s no.1 oil & gas equipment exhibition

 
The Moscow International Oil & Gas Exhibition is the meeting place for the international community and Russia’s oil & gas industry. Over 560 companies trust the show to let them meet and do business with representatives from across the value chain.
 
Here, you’ll meet the players behind the Russian oil & gas projects listed above, as well as getting details on Russia’s project landscape from to 2025 and beyond. 
 
Find procurement, engineering and purchasing specialists exclusively at MIOGE.
 
Russian majors, including Gazprom, Tatneft, Rosneft and Lukoil, attend the show every year. Why? To meet new partners and suppliers of in-demand oil & gas equipment and technology.
 
 
Want more information on how MIOGE can help grow your business in Russia’s enormous oil & gas industry? Contact our team today.