JSC "Power Machines": execution of the project Surgutskaya GRES-1, unit 2, 12 is suspended by decision of PJSC "OGK-2", negotiations are underway on the terms of termination of the contract
In connection with publications that appeared in a number of media outlets that Gazprom Energoholding (GEH) intends to refuse to modernize two power units of Surgutskaya GRES-1, allegedly due to the impossibility of timely delivery of steam turbines from Power Machines, we consider it necessary to provide clarification.
In December 2021, PJSC OGK-2 and JSC Power Machines entered into agreements for the supply of steam turbines complete with generators for power units No. 2, 12 of Surgutskaya GRES-1 with delivery dates for the main equipment in the 1st and 2nd quarters of 2025.
In December 2022, JSC Power Machines entered into an agreement with PJSC RusHydro for the supply of steam turbines for power units No. 4, 5 of the Neryungri State District Power Plant with delivery dates for the equipment in the 1st quarter of 2026.
For both projects, JSC Power Machines has begun execution: contracts for the supply of long-cycle billets from suppliers have been concluded; equipment units are at various stages of design, supply of long-cycle billets, and manufacturing. Project deadlines are not expected to be missed.
In December 2023, PJSC OGK-2 notified JSC Power Machines on the need to suspend obligations under the contract for the supply of equipment for Surgutskaya GRES-1, bl. 2, 12. The customer indicated that the need for early termination of the contract is not related to non-performance or improper performance by Power Machines. of its obligations, and asked to consider the possibility of using the equipment in other Power Machines projects. Thus, termination of the contract is exclusively an internal decision of the customer.
Currently, the implementation of the Surgutskaya GRES-1 project, bldg. 2, 12 is suspended by decision of PJSC OGK -2", negotiations are underway on the terms of termination of the contract. The production of equipment for the Neryungri State District Power Plant is being implemented within the agreed terms.