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Gazprom expanding cooperation with Russia’s military-industrial complex

#Documents signed #IR releases

Alexey Miller, Chairman of the Gazprom Management Committee, took part in the meeting of the Board of the Military-Industrial Commission of the Russian Federation chaired by Dmitry Rogozin, Russia’s Deputy Prime Minister, held today in Rybinsk.

The event was devoted to business diversification in Russia’s military-industrial complex (MIC) in the interests of Gazprom. It was noted that the Company was interested in expanding cooperation and widening the use of scientific and technological capacities of the MIC in the development of cutting-edge technologies and equipment, including import-substituting ones, for the gas industry. Such cooperation should be focused primarily on state-of-the-art compressor equipment, hydrocarbon production in offshore environments, and natural gas liquefaction.

A number of documents were signed after the meeting.

Alexey Miller and Alexander Artyukhov, Director General of United Engine Corporation (UEC), signed an Agreement of Intent. Pursuant to the document, the parties will explore the possibility of establishing a production entity focused on assembly, testing, repair and maintenance of standardized 25 MW gas compressors (GPA-25U) on the platform of UEC – Gas Turbines.

A standardized gas compressor should meet the advanced technical requirements with regard to energy efficiency, eco-friendliness, reliability, and reparability. UEC is supposed to invest in the drafting of design and process documentation and the establishment of the production entity, while Gazprom, in its turn, plans to purchase such compressors.

Alexey Miller and Alexander Artyukhov also signed an Agreement of Intent between Gazprom and Rostec, a state-owned corporation. In accordance with the Agreement, the two corporations will look into opportunities for synergy in the setting up of a separate entity on the platform of Ufa-AviaGaz for assembly, testing, repair and maintenance of AL-31ST gas turbine engines. A financial feasibility study will be conducted and a business plan will be drawn up during the first stage of the project.

Alexey Miller and Sergey Fomin, First Deputy Director General of Russian Helicopters, inked an Agreement of Intent to build maritime helicopters. The document envisages cooperation between the parties on the design, production and maintenance by Russian Helicopters of Mi-171A2 helicopters of the offshore modification that are as good as their foreign equivalents and have the same or lower price. Gazprom plans to purchase such helicopters to transport personnel and cargo from onshore bases to offshore drilling and production platforms and auxiliary vessels.

In addition, Gazprom Space Systems and United Rocket and Space Corporation (URSC) signed today an Agreement of partnership and cooperation. The parties will explore the opportunity of building five satellites as part of the development of the Gazprom-owned SMOTR aerospace system for remote sensing of the Earth and the creation of the Arktika state multi-purpose space system. Two of those satellites are meant for ensuring industrial safety at facilities located in the Arctic and navigation safety along the Northern Sea Route. The other three satellites will secure high-speed communication to mobile units in the Arctic. It is planned to manufacture satellites at an assembly plant of Gazprom Space Systems, while URSC will arrange for the production of launch vehicles for throwing satellites into orbit from the Vostochny Cosmodrome.

Background

The use of standardized solutions in building gas compressors helps optimize capital expenditures and reduce the time spent on the design and construction of compressor stations, as well as cut down operating costs for the maintenance and repair of core process equipment. By deploying 16 MW standardized gas compressors at its facilities, Gazprom reduced its expenses on design (up to 20 per cent) and installation (up to 30 per cent) and sped up equipment design and delivery.

Ufa Engine Industrial Association and Ufa-AviaGaz, both part of Rostec, produce AL-31ST gas turbine drive engines in various modifications. More than 70 such engines are currently in use at Gazprom’s compressor stations.

 

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