Siemens concludes major construction contract with Russia

On Monday, December 18th, Siemens signed a contract for the construction of a combined cycle power plant in Nizhnekamsk with a capacity of 495 MW. The worth of the contract is 380 million euros.

The contract was signed in Munich by the President of Siemens in Russia, Dietrich Möller, and Azat Bikmurzin, General Director of PJSC Nizhnekamskneftekhim (Taif group of companies), in the presence of the Deputy Prime Minister of Bavaria, Ilse Aigner, President of Tatarstan, Rustam Minnikhanov, and Chairman of the Board of Siemens, Joe Kaeser.

According to the contract, Siemens will supply two SGT5-2000E gas turbines and one ST-600 steam turbine, as well as equipment for energy distribution. Turkish construction company ENKA will be a subcontractor. It is expected that Nizhnekamskneftekhim will also sign a 13-year service agreement with Siemens.

The power plant should become operational by May 2021. It is supposed to work on synthetic gas, a byproduct of Nizhnekamskneftekhim’s petrochemical production.

Siemens is the general contractor, so "the company will retain full control over the supply and installation of equipment," the representative of the German concern told RBC news agency.

This is Siemens' first major contract in Russia after their turbines were found in the annexed Crimea. Presently, there are legal proceedings in connection with this issue.

  Siemens, Russia