Power Engineering

Whilst Rusneftegaz is one of the leading Russian oil companies in terms of hydrocarbon extraction, our organization has also successfully accumulated a considerable holding of energy generation assets. Consequently, the production and sale of both electrical power and heat has now become one of the most lucrative areas of our business, with Rusneftegaz emerging as a leading entity in the management and renovation of thermal power stations globally. Through the deployment of both world-class expertise and innovation, our company has engineered a considerable percentage of the equipment utilized in our plants, significantly reducing costs to maximize reliability and profitability. This has ultimately resulted in Rusneftegaz becoming one of the most efficient entities currently operating in the Russian electricity sector, including through the application of best practices from across the globe and the utilization of advanced and innovative equipment, solutions, and technologies.

​In recent years, the average annual output of our group has been approximately 10,0 billion kilowatt hours (KWh), with Rusneftegaz currently operating 1.860 megawatt (MW) of coal-fired generating capacity across three 600 MW units in the province of Vologda. The plants were originally constructed to supply electricity and heat to industrial enterprises, and since their acquisition by our company has been significantly overhauled to adhere to contemporary standards. In its current configuration, our power station is arranged in a block layout, with each unit consisting of a steam condensing turbine manufactured in France by Alstom, in conjunction with a once-through supercritical steam generator, functioning via passive heat exchange. The site also maintains a condenser working via a closed circulating water supply system with dry fan cooling towers. This process operates with the cooled liquid circulating within a closed circuit, ultimately not increasing in air pollution or humidity as a result. Our total energy production for the past five years can be reviewed in the table below:

		2018	2019	2020	2021	2022
Total electricity production	(TWh)	10,27	10,46	8,55	9,44	10,31
Installed capacity utilization	(%)	63,03	64,20	52,47	57,94	63,28
Total installed capacity	(MW)	1.860	1.860	1.860	1.860	1.860

 

At present, our power capacity is structured to comply with all legal requirements regarding the generation of electricity and heat, including all environmental legislation. This is achieved through the utilization of equipment, material, and solutions that satisfy the highest Russian and international ecological standards. Thus, in recent times Rusneftegaz has operated in conformity with the ISO 50001, which provides stipulations with regard to energy consumption, efficiency, security, and usage. Consequently, our management has continuously strived to maintain and improve standards in accordance with this code, ensuring our internal assessors uphold such these practices prudently. Fundamentally, our primary objective is to devise and implement our projects through the introduction of state-of-the-art energy efficiency technologies, whilst also optimizing the reliability of the plant. For example, Rusneftegaz is currently planning to install advanced sensors that calculate loading and discharge rates to maximize operational efficiency and regulate fuel consumption. Although bituminous coal serves as the main and reserve fuel of our power station, Rusneftegaz also maintains a 60,0 MW diesel generator assembled by Wärtsilä for standby purposes.

​Currently, Rusneftegaz is implementing a comprehensive regeneration program of our installed capacity, with the main intention of these investments being to improve the reliability, efficiency, and effectiveness of our assets. This ultimately entails replacing the existing generation architecture with contemporary, high-performance equipment and machinery that represents a marked improvement from its predecessor. The focus of this scheme, however, is to not replace individual components and parts, but to comprehensively modernize our generating facilities as single homogenous units with unique and complex requirements.  Therefore, Rusneftegaz plans to replace or reconstruct all the main and auxiliary equipment of the power stations, in addition to the corresponding electrical equipment and systems. This necessitates reviewing multiple high-voltage circuit breakers and switch gears, plus hundreds of pieces of both secondary switching apparatus and other ancillary machinery.

​With such extensive works being required, Rusneftegaz will need to work with an array of equipment manufactures from around the world to ensure the integrity of both our plant and our operations. Although our organization shall always prioritize collaborating with Russian companies, when signing these contracts our management will prioritize doing business with those who specialize in coal-fired power generation, and have developed technologies that are tailored to our current needs. For example, our organization requires infrastructure that can provide us with high efficiency and reliability, enhanced operational and environmental performance, whilst also reducing both fuel consumption and emissions into the atmosphere. We have previously reconstructed our steam generators to increase the quality and rate of the superheated gas, and may conduct upgrades to expand the megawatt capacity of our power plants. Despite this, the primary focus of our overhaul of our turbines and generators is to modernize this equipment to align with contemporary standards of power engineering. These revised designs will also guarantee greater efficiency, reliability and safety, whilst also significantly reducing repair costs and lengthening the service life of the assets.

​Despite such extensive and costly upgrades, Rusneftegaz aims to ensure long-term profit growth and financial stability. However, the primary objective of our energy generation business is to provide a reliable heat and power supply to our customers. Such an undertaking is accomplished by focusing upon improving operational and technological efficiency, in conjunction with developing our personnel to maintain the highest professional standards attainable. This includes complying with all local and national laws and regulations, upholding our stringent safety requirements, and aspiring to protect the environment. As a result, Rusneftegaz conducts rigorous risk assessment and planning when conducting our activities, and ensures that work is completed effectively to guarantee the needs and requirements of our customers are satisfied. Our organization also makes a meticulous effort to safeguard this knowledge accrued by our staff by valuing both experience and the most longstanding members of our workforce, whilst also endeavoring to recruit the next generation of employees into our company.

​In the longer term, our development strategy is focused upon further expansion within the Russian Federation and internationally. Rusneftegaz’s portfolio will be variegated further into more efficient and sustainable technologies, focusing on modern and advanced thermal generation. In 2030, we plan to have the capability to manufacture and export power equipment to expedite international expansion. In the meanwhile, our organization aspires to cooperate in the near and distant future with global corporations and businesses for the mutual benefit of our respective entities. For instance, we aim to continue collaborating with power equipment manufacturers to acquire advanced foreign technologies to accelerate our technological development and modernize our existing production assets. Both our management and our researchers will further monitor the development of the international power sector, with the expectation that the latest research will enable us to increase the competence of our undertakings, and allow us to consider expanding into new markets. All of such notions, however, will always be conducted in accordance with the best interests of Rusneftegaz, and the geopolitical strategic interests of the Russian Federation.