13 Nov 2023 09:24

Kazanorgsintez aims to finish building power plant abandoned by Siemens by 2026

KAZAN. Nov 13 (Interfax) - Kazanorgsintez , a division of Russian petrochemical group SIBUR, plans to put a 250 MW combined cycle power plant that was supposed to be built by Germany's Siemens into operation at the end of 2025, the chemical plant's general director, Airat Safin told Interfax at a business forum in Kazan.

"We plan to complete this project by the end of 2025," Safin said. He recalled that Kazanorgsintez resumed construction of the Lushnikovskaya CCGT plant in August, with Turkish engineering group Enka, which started building the plant with Siemens, serving as the contractor.

Kazanorgsintez and Siemens signed the contract to build the 250 MW plant in October 2019 and its turnkey delivery was scheduled for March 2023, but Siemens announced in July 2022 that it would not fulfill its obligations due to sanctions. After this, all work on the project was suspended.

Kazanorgsintez filed a lawsuit in March 2023 against Siemens Energy and its former Moscow division Neftegaz Energetika LLC (Siemens Energy LLC until June 2022), seeking 9.5 billion rubles for incomplete work on an advance paid for the construction of the power plant. Neftegaz Energetika's financial statement published in April indicated that Kazanorgsintez and Siemens Energy were considering an out-of-court settlement and in August the Kazanorgsintez dropped the lawsuit.

Kazanorgsintez, which became part of the SIBUR group in October 2021, is one of Russia's largest polyethylene producers and the country's only producer of polycarbonate.