OREANDA-NEWS. December 20, 2012. Vitaly Markelov, Chairman of the Gazprom Management Committee, Sergey Ivanov, Chairman of the REP Holding Board of Directors and Igor Starinkov, President of REP Holding signed today a Long-Term Cooperation Program until 2020. The document was inked at the Gazprom headquarters.

For many years Gazprom has been purposefully carried out the import substitution policy. While placing high demands on equipment quality, the Company encourages Russian producers to introduce cutting-edge technologies and supports manufacturing of products for the Company's needs.

The key objective of the strategic cooperation between Gazprom and REP Holding will be creation of conditions necessary for domestic development and mass production of competitive gas turbine and electric driven gas compressor units (GCU) and power plants with the use of leading global technologies. In particular, this refers to gas compressor units with different capacities, i.e. 4, 6, 12.5, 16, 22, 25 and 32 MW, with enhanced durability and increased efficiency (up to 40 per cent). Low maintenance costs will be among distinguishing features of the units, and it will be possible to repair them immediately at compressor stations.

As part of the Program, REP Holding will make its own investments and will make efforts aimed at deep upgrade of production facilities, introduction of advanced and innovative developments, creation of centralized test facility as well as regional network of service centers. The document signed by the parties doesn't provide for preferences for a particular producer. The equipment needed for Gazprom will be purchased on the basis of a bidding procedure.

“The future of Gazprom as a global energy company is inseparably connected with innovations. It affects all Company's business activities including gas transmission. We've already gained the experience of successful partnership with REP Holding. The Ladoga-32, the unique GCUs with the capacity of 32 MW, are used for construction of gas compressor stations that are part of Bovanenkovo – Ukhta, a gas trunkline system of new generation. I am confident that our collaboration will enable us to extend the inventory of equipment produced in Russia that will be highly competitive with the world's best analogs,” said Vitaly Markelov.

“Signing the long-term cooperation program became an important step in our cooperation with Gazprom, aimed at introduction of the cutting-edge and high-tech compressor equipment at the key facilities being upgraded or under construction within development of the gas trunkline system. This agreement underlines the importance of applying highly efficient and innovative technologies for upgrading the Russian energy infrastructure and the domestic gas industry,” said Igor Starinkov.
Background

In Russia Gazprom's gas transmission system includes 211 line pipe compressor stations utilizing 3,630 operational GCUs with the aggregate capacity of 41.7 thousand MW. Gazprom's activities aimed at the gas transmission system upgrade include introduction of the cutting-edge, highly efficient and resource-saving equipment.

REP Holding is focused on engineering, production and comprehensive supply of power-generating equipment for the gas, oil, metallurgical, chemical, power generation and shipbuilding industries. The Holding embraces production, R&D and service facilities including such prominent Saint Petersburg enterprises as Nevsky Plant and Electropult Plant. The company also participates in joint ventures with western companies.

The factor that distinguishes the Ladoga GCU with the capacity of 32 MW from other domestic production is a high efficiency level (36 per cent), low emissions and a long operating life.