Siemens to supply turbines to Russia for construction of power plant in Chechnya

Gazprom will acquire two Siemens gas turbines for the thermal power plant (TPP) in Grozny, RBC news agency reports with reference to Gazprom’s statement. According to RBC, on March 16, the meeting between the head of Gazprom Alexey Miller and Siemens CEO Joe Kaeser was held in St. Petersburg, where the heads of the companies discussed father cooperation.

"The parties, in particular, focused their discussion on the supply of equipment for the Grozny TPP. According to the signed contract, Siemens will ship, install and commission two gas turbines for a power plant with a total capacity of up to 360 MW. The launch of the facility is planned for 2019," Gazprom said.

It became known as early as April 2015 that the Russian conglomerate intends to buy Siemens turbines for the Grozny TPP became. It was reported that the German company won the bid for the supply of equipment for TPP, which is being built by Gazprom.

In April 2017, the Supervisory Board of the Market Council of Russia approved the replacement of equipment at the Grozny power plant to transform it from a combined-cycle plant (CCGT) to a gas turbine plant (GTP), as reported by Vedomosti news outlet, citing sources close to the negotiations.

In the summer of 2017, a scandal broke out regading the supply of gas turbines for the construction of power plants in the Crimea. It was reported that the turbines were delivered to the peninsula in spite of sanctions. Siemens and its subsidiary, Siemens Gas Turbine Technology LLC, filed two lawsuits in 2017 against Rostec's structures - Tekhnopromexport OJSC and Technopromexport LLC. Siemens initially asked for the turbines to be seized, and then demanded that two contracts on the supply of these turbines to be terminated. None of these claims were satisfied in Siemens favor. On March 1, the Arbitration Court of Appeal of Moscow rejected the complaint of the German company regarding the decision of the Moscow Arbitration Court in the dispute over the supply of turbines to the Crimea.

  Siemens, Gazprom, Grozny