Siemens Energy has sold a 65% stake in a Russia-based gas turbine joint venture to local state company InterRAO, in line with its strategy to exit the country, the companies said on Oct. 14.
No financial details were disclosed.
The joint venture—OOO Siemens Gas Turbine Technologies (SGTT)—is co-owned by Russian power equipment provider Power Machines.
Siemens Energy in August said it might sell or wind down its Russian business and that it was in touch with public authorities to work through the details.
As well as the 65% stake in SGTT, InterRAO has taken control of 100% of the Voronezh transformer plant, the company said in the statement.
According to the Russian company, it will use the plant to ensure more gas turbine components are produced in Russia.
Importing and maintaining equipment in Russia has became much harder after Moscow sent tens of thousands of troops into Ukraine on Feb. 24, and the West responded with unprecedented sanctions.
The deal could help to organize servicing of foreign–made gas turbines, which has been hindered by foreign specialists and companies leaving Russia, an InterRAO spokesperson said in written comments.
“The demand for modern turbines and transformers will be huge in the near future, and maintenance services are necessary for all energy companies, where foreign power equipment is installed,” the representative said.
The deal has been approved by the Russian government and Russia’s anti-monopoly watchdog, he added.
Russia accounted for a low single-digit percentage share of Siemens Energy’s total sales of 28.5 billion euros (US$27.7 billion) in 2021, it said earlier this year.
(US$1 = 1.0273 euros)
Recommended Reading
Waha NatGas Prices Go Negative
2024-03-14 - An Enterprise Partners executive said conditions make for a strong LNG export market at an industry lunch on March 14.
Enbridge Announces $500MM Investment in Gulf Coast Facilities
2024-03-06 - Enbridge’s 2024 budget will go primarily towards crude export and storage, advancing plans that see continued growth in power generated by natural gas.
Summit Midstream Launches Double E Pipeline Open Season
2024-04-02 - The Double E pipeline is set to deliver gas to the Waha Hub before the Matterhorn Express pipeline provides sorely needed takeaway capacity, an analyst said.
Williams Beats 2023 Expectations, Touts Natgas Infrastructure Additions
2024-02-14 - Williams to continue developing natural gas infrastructure in 2024 with growth capex expected to top $1.45 billion.
Kinder Morgan Sees Need for Another Permian NatGas Pipeline
2024-04-18 - Negative prices, tight capacity and upcoming demand are driving natural gas leaders at Kinder Morgan to think about more takeaway capacity.