Siemens Energy Secures $132 Million Equipment Supply Contract for Rosneft's Tuapse Refinery Expansion

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Researched by Industrial Info Resources (Sugar Land, Texas)--Siemens Energy (Erlangen, Germany), a subsidiary of Siemens AG (NYSE:SI) (Munich, Germany), recently secured an order valued at $132 million from OOO RN-Tuapsinskiy NPZ, a subsidiary of NK Rosneft OAO (LSE:ROSN) (Moscow, Russia), for the supply of six industrial gas turbines and generators for generation of steam and electricity as part of the expansion of Rosneft's Tuapse refinery on the Black Sea coast in the Krasnodar territory of southern Russia.

Siemens Energy will supply six SGT-800 gas turbine units of 47 megawatts (MW) each. Three units will be delivered in the latter half of 2010, while the remaining three units are scheduled for delivery by the end of 2012.

RN-Tuapsinskiy is undertaking expansion and upgrading projects to augment the refining capacity of the Tuapse facility from about 110,000 barrels per day (BBL/d) to about 250,000 BBL/d. The refining depth will be enhanced from 56% to 95%, and the upgrade project will allow the refinery to produce products compliant to Euro-4 and Euro-5 standards.

Commissioned in 1929, the Tuapse refinery is Rosneft's oldest refinery and the only Russian refinery located on the Black Sea coast. The facility specializes in the production of motor fuel. Crude oil feedstock for the refinery is procured from western Siberia through the Transneft pipeline system and from Rosneft's oilfields in southern Russia through the pipeline and by rail. Located near the Tuapse oil-loading terminal, the refinery exports nearly 90% of its petroleum products, while the remainder is sold in the domestic market. In 2008, the refinery processed 110,000 BBL/d of crude oil and had an output of 5.11 million tons of petroleum products. Output from the refinery comprised 2.26 million tons of fuel oil, 1.7 million tons of diesel fuel, 1.02 million tons of gasoline and naphtha, and 60,000 tons of other petroleum products.

Upon completion of the expansion and modernization program, the Tuapse refinery is expected to fully cater to the demand for high-quality fuel in the Southern Federal District of Russia. In addition, the Tuapse oil-loading terminal is being upgraded to a trans-shipment capacity of 17 million tons per year, which will augment exports from the refinery.

Siemens Energy previously supplied three SGT-800 turbines of 45 MW each to Rosneft for the development of a 135-MW gas-turbine power plant at the Priobskoye oil deposit in Siberia. Awarded in April 2008, the contract was valued at more than $58 million. The power plant was to be developed in three stages, with the three SGT-800 units to be used in the first 135-MW stage, which was scheduled for commissioning in December 2008. The second and third stages were scheduled to go on stream in December 2009 and April 2010, respectively. In a more recent press release, Siemens reports having received orders from Rosneft for a total of seven SGT-800 turbine units for the power plant. With a power generation capacity of 315 MW, the plant will cater to the power requirements of Rosneft's facilities associated with the oilfield. The facility will operate on a feedstock of petroleum gas and is part of Rosneft's strategy to increase the utilization of associated gas produced in the oil field.

Siemens Energy also supplied three SGT-800 turbine generator units to the Kolomenskoe combined heat and power (CHP) plant in Moscow, which commenced operations in June this year. The facility has an overall efficiency of 83% and supplies 136 MW of electric power and 171 million kilocalories per hour of district heat to Moscow. The power plant was constructed by NaftaSib Energiya OOO (Moscow) under a contract with the government of Moscow.

In January this year, Siemens Energy supplied two SGT-800 gas turbines as part of a $147 million equipment supply contract placed by OJSC Territorial Generating Company #9 for the development of a CHP plant in Perm in the Volga federal district. The project is part of the reconstruction of a 60-year-old CHP plant in the region and is aimed at increasing the thermal capacity of the facility from 57 MW to 180 MW. The new CHP plant is scheduled to go online in 2010.

The SGT-800 unit was launched in 1997 under the name GTX100 and had a power rating of 43 MW. The power rating in simple-cycle applications was subsequently increased to 45 MW and more recently to 47 MW. Electrical efficiency increased from 37% to 37.5%. (In combined cycle power plants, output has increased from 64 MW to 66 MW, and efficiency has increased from 53% to 54%.) The unit offers several benefits, including high efficiency, high reliability, low lifecycle-costs, and operability under extreme climatic conditions. Capable of operating on a variety of fuels including liquid fuel, natural gas, and dual fuel as feedstock, each unit is also equipped with a Dry Low Emissions combustion system that minimizes emissions of nitrogen oxides under a range of operating conditions. To date, Siemens has fulfilled or is currently executing orders for the supply of 29 SGT-800 units to Russia.

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