Siemens wins major power order for Yamal LNG project in Russia

Source:Siemens

Siemens (NYSE: SI) will deliver the key components for a power station that is going to supply the future Yamal LNG (Liquified Natural Gas) production plant in Northern Russia with electricity and heat. The Siemens scope of supply comprises the design, manufacture, factory testing, delivery, installation and commissioning of eight SGT-800 industrial gas turbines as well as nine step-up transformers. Four of these turbines will additionally be equipped with waste heat recovery units. The power plant will have an electrical output of 376 megawatts (MWe).

The order has been placed by the Russian engineering company Technopromexport (TPE), which is a wholly owned subsidiary of Rostec State Corporation. TPE is an EPC company which is recognized as the winner for the above project based on the results of the tender. Located onshore, in the Arctic area of the Yamal Peninsula in the North of Western Siberia, the Yamal LNG project is to develop the wet gas resources of the Yamal-Nenets region. Shareholders of the plant operator OJSC Yamal LNG are the Russian electric company OJSC NOVATEK (80%) and the French Total (20%).

The Siemens SGT-800 industrial gas turbine combines a reliable robust design with high efficiency and low emissions and is qualified especially for such harsh climate conditions like in the area north of the Arctic Circle. "Yamal LNG is a key project for Siemens. It is the biggest single order so far for this type of gas turbine and for the future we see a quite promising market, particularly in Russia," said Adil Toubia, CEO of the Siemens Energy Oil & Gas Division.

In 2010 the Russian Government approved a comprehensive plan geared to develop production of liquefied natural gas on the Yamal Peninsula. Yamal LNG was selected as a pilot project, which envisages the construction of a LNG plant with an annual capacity of over 16 million tons based on feedstock resources of the South-Tambeyskoye field, located in the north-eastern portion of the Yamal Peninsula. According to the PRMS reserve standards the proven and probable reserves of the South-Tambeyskoye field as of December 31, 2012, were appraised at 907 billion cubic meters of natural gas.

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