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Siemens Wins a Contract for the Turnkey Construction of a Power Plant in Tatarstan

Source: 12/18/2017, Location: Asia

Siemens has received an order from its customer Nizhnekamskneftekhim to build a combined cycle power plant on a turnkey basis in Tatarstan. Nizhnekamskneftekhim is a member of the TAIF Group headquartered in Kazan, Tatarstan, Russia. The corresponding contract was signed today by Azat Bikmurzin, General Director of Nizhnekamskneftekhim, and the CEO of Siemens Russia Dietrich Moeller in the presence of the President of Tatarstan His Excellency Rustam Minnikhanov, Deputy Prime Minister of Bavaria Ilse Aigner, TAIF CEO Albert Shigaboutdinov and Siemens CEO Joe Kaeser.

As general contractor, Siemens will cooperate with the Turkish company ENKA to build the 495-MW combined cycle power plant on a turnkey basis. The contract includes the delivery of two SGT5-2000? gas turbines, one SST-600 steam turbine and the corresponding power distribution systems as well as a 13-year service agreement to be signed at a later date. The order volume, including the service agreement, totals 380 million. The power plant is scheduled to begin operation in May 2021.

"The need to implement our own power generation construction project for Nizhnekamskneftekhim industrial production is due to the year-on-year increase in power consumption against the background of production expansion and the launch of new hydrocarbon processing facilities as well as the annual increase in power and capacity purchase costs. I would like to specifically mention that the newly launched power plant will run on associated gas derivatives that is, byproducts from Nizhnekamskneftekhim production processes. Their utilization in gas turbine units under stringent Russian and EU requirements regarding air-polluting gas emissions will significantly improve the environment in the Nizhnekamsk industrial hub," said TAIF CEO Albert Shigaboutdinov.

"After intensive negotiations with our customer, we've prevailed against tough competition and landed an impressive order. I'm grateful for the trust placed in us," said Joe Kaeser, President and CEO of Siemens AG. "One highlight of this power plant is its ability to fire syngas a byproduct of our customer's petrochemical production. Syngas firing will also cut operating costs substantially.

Leveraging our extensive experience and advanced technologies, we're going to construct a modern power plant that will provide secure, reliable and efficient power for the production facilities of Nizhnekamskneftekhim," said Dietrich Moeller, CEO of Siemens Russia. "This order impressively underscores our customer proximity, which is based particularly in connection with the changes taking place in the power generation market worldwide on our proven technologies and stable partnership," Moeller added.

TAIF is a major production and investment company, with extensive assets and enormous production capacities.

The TAIF Group, which comprises more than 50 subsidiaries and affiliated companies, operates in a large number of areas, five of which are so-called focus fields: oil and gas processing and petrochemicals, power generation, telecommunications, building and construction, and banking and investment services. One of Europe's largest petrochemical companies, Nizhnekamskneftekhim is a leader in Russia in the production of synthetic rubbers and plastics.

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