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Gazprom and Tatarstan agree on scientific & technical cooperation and import-substituting equipment supplies

The Gazprom headquarters hosted today a working meeting between Alexey Miller, Chairman of the Company’s Management Committee, and Rustam Minnikhanov, President of the Republic of Tatarstan.

The parties addressed the prospects for cooperation between the Company and the Republic. It was noted that Gazprom had invested around RUB 26 billion in the projects aimed at enhancing the reliability of gas deliveries to Tatarstan’s consumers between 2011 and 2015. The funds were used, among other things, to retrofit the Arskaya compressor station and the Minnibayevo – Kazan gas pipeline as well as to build a gas lateral and the Elizavetino automated gas distribution station (AGDS) for gas supply to the high-tech city of Innopolis. At present, construction is underway to erect the second gas lateral and another AGDS for expanding gas deliveries to Innopolis.

In the course of the meeting, Alexey Miller and Rustam Minnikhanov signed the Agreement on scientific & technical cooperation and partnership between Gazprom and the Republic of Tatarstan. The document is effective through 2020 and stipulates cooperation in innovations, information analysis and expertise using the potential of the Innopolis University higher educational institution. The priority areas of cooperation are creation, development and application of information and robotic technologies at gas production and transmission facilities of Gazprom.

In addition, Vitaly Markelov, Deputy Chairman of the Gazprom Management Committee, and Artyom Molchanov, Director General of HMS Group Management, inked a long-term contract for the production and supply of import-substituting TAKAT modular compressor units with the capacity of 1,000 kWh to be used at gas fields with declining production and APG utilization facilities. The units will be made using only domestic assemblies and components.

In future, those modular compressor units will enable Gazprom to give up purchasing similar equipment in Germany and the Netherlands.

Under to the contract, Kazancompressormash will upgrade existing capacities, set up batch production of new equipment, ensure its maintenance and provide extended warranty services. Gazprom, on its part, will be acquiring the units during several years at a price not exceeding the value of their foreign counterparts.

Background

Gazprom and the Republic of Tatarstan are bound by the Agreement of Cooperation, the Gasification Accord and the Agreement on wider use of natural gas as a vehicle fuel. In 2015, the parties inked the Roadmap for the project aimed at promoting the use of high-tech products turned out by Tatarstan’s companies for the benefit of Gazprom.

Tatarstan’s gasification level is one of the highest in Russia: 99.5 per cent (versus the country’s average of 66.2 per cent).

At present, Gazprom is building an inter-settlement gas pipeline to the New Jerusalem Monastery of Resurrection in Kazan. The construction will be completed in late 2016.

There are 13 CNG filling stations owned by Gazprom in the Republic of Tatarstan, with three of those brought into operation in June 2016. It is planned to build five new stations and upgrade one before the end of 2016.

As part of the Gazprom for Children program, the Company has constructed new sports centers (city of Bugulma and Bogatye Saby urban settlement), stadiums (city of Yelabuga and Rybnaya Sloboda urban settlement), tennis courts (cities of Kazan and Naberezhnye Chelny) and versatile sports grounds in rural areas across the Republic.

Kazancompressormash (part of the HMS Group machine-building holding) is Russia’s largest closed production cycle enterprise focused on the output of centrifugal and screw-type compressors and compressor units on their basis.

In October 2015, Gazprom launched a new collaboration scheme for Russian manufacturers based on long-term contracts for the batch production, supply and extensive maintenance of import-substituting products in the amount equal to guaranteed future purchases at a price not exceeding the value of foreign equivalents. Due to long-term contracts, suppliers have a predictable amount of orders, while Gazprom receives high-quality products at competitive prices.

Kazancompressormash is the fifth industrial company to sign a long-term contract with Gazprom. Similar contracts were concluded earlier with Salavat Catalyst Plant, Tomsk Machine-Building Technologies, TMK, and Trubodetal (a subsidiary of United Metallurgical Company).

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