The Russian Inter RAO announces the signing of an agreement on gas turbines with GE from here October

KRASNOYARSK, Russia (Reuters) – The Inter-RAO executive director (Russia) said on Saturday that the energy holding company was hoping to reach an agreement with General Electric Co. for the production of powerful gas turbines in Russia. venture, or by purchasing a license. GE.

Russia, which currently does not produce gas turbines of medium or large power, recently launched a program of 1.9 trillion rubles ($ 29 billion) to modernize a quarter of its production. electricity, or 41 gigawatts of coal and gas power plants. .

It is seen as a rare opportunity for Western producers in the face of declining global demand for gas turbines in recent years, but Moscow said investors should only use fully localized equipment – produced in the country – in the country. part of a local content campaign.

Inter RAO CEO Boris Kovalchuk said the modernization program would open a big market for GE for 10 years.

"We hope to reach all agreements with them within six months," Kovalchuk told reporters at a conference in Krasnoyarsk, Siberia.

A plant owned jointly by Inter RAO, GE and the Russian state conglomerate Rostec produces 77 megawatt turbines in the central region of Yaroslavl, Russia.

GE's ongoing discussions with Inter RAO focus on local production of 185 to 195 megawatt turbines. Inter RAO could buy Rostec's stake in the plant as part of the deal with GE, Kovalchuk added.

A joint venture between Siemens and the Russian company Power Machines is already producing turbines in Russia. Siemens, which holds 65% stake in the company, is committed to increasing the level of localization of the production process.

Russian-controlled companies – Rostec, Rosnano and Inter RAO – are trying to create their own gas turbine production, but their prototype project has failed. Sources, familiar with the subject, told Reuters a year ago.

Kovalchuk said Saturday that the project was continuing and that Inter RAO had forwarded the second turbine to the project operator for improvement.

(Report by Anastasia Lyrchikova, Written by Polina Devitt, Edited by Helen Popper)