Russia's budget to finance subsidies to produce large-capacity LNG compressors in Tatarstan

MOSCOW. July 17 (Interfax) - The Russian government plans to subsidize Tatarstan in order to finance a facility to produce liquefied natural gas (LNG) compressors at large-capacity, the government's press service said.

Russia's cabinet of ministers on Thursday will consider during a meeting the matter of allocating budgetary funds to the Industry and Trade Ministry in 2025 from the reserve fund of the government to provide one-time financial assistance as a subsidy from the federal budget to Tatarstan's budget.

The draft order should provide financial support to implement the complex for the production of large-capacity LNG-compressor investment project units in the single-industry town of Zelenodolsk.

JSC Kazan Compressor Engineering Plant (Kazankompressormash ), part of the HMS Group , is implementing the project to establish a complex to manufacture large-capacity LNG compressor units in the Kazan suburb of Zelenodolsk.

The products of the new production will replace equipment from Baker Hughes Co. , Mitsubishi and SBW, within the current and prospective projects to establish large-capacity and medium-capacity LNG production facilities for key Russian customers, such as Gazprom and Novatek .

The production complex is under construction on a 5.5-hectare site acquired by Kazankompressormash. The production capacity of the site in Zelenodolsk is 12 units per year, and it is possible to assemble up to three units of equipment at a time.

Kazankompressormash is a major Russian manufacturer of compressor equipment and complete solutions based on compressors for various industries.

HMS Group is one of Russia's largest manufacturers of industrial pumps and compressors that performs a wide range of operations in the integrated development of oil and gas production and water management facilities.