Gazprom Signs Deal With China To Pay For Gas In Yuan And Rubles Rather Than US Dollar

"On non-compliance of GCU No. 24 at Portovaya CS with mandatory industrial safety requirements under Russian legislation.

On September 2, 2022, Rostekhnadzor of Russia issued to Gazprom a Warning on the inadmissibili of violating mandatory requirements and the need for the adoption of appropriate measures and suspension of the operation of the Trent 60 gas compressor unit (GCU No. 24) at the Portovaya CS due to a detected leakage of oil with a sealing compound along the terminal connections at the low-pressure and intermediate-pressure rotor speed sensors.

Unless the detected faults are eliminated, further operation of the gas compressor unit creates a risk of fire or explosion, thereby affecting the industrial safety of the entire station.

The oil leakage failed to be detected during the scheduled maintenance works that took place at GCU No. 24 in July 2022, as evidenced by the report signed by the Siemens representatives who performed the service works at the facility.

It should be noted that the working surfaces in the axial compressor of the gas turbine engine in the locations of the cable connections can heat up to temperatures above 300 °C while the fire point of oil is approximately 288 °C."

"A similar leakage that was identified earlier at GCU No. 14 (engine No. 120) progressed and was more expansive. The fact that this fault has been detected on several units indicates that the problem is systemic. By resolution of Rostekhnadzor of Russia dated July 13, 2022, on the temporary ban against the operation of engine No. 120, GCU No. 14 was taken out of operation and put into forced downtime.

According to a letter from Siemens, the oil leakages cannot be fully eliminated unless repairs take place at a specialized repair facility.

The Portovaya CS is a hazardous production facility. In line with Article 9 of Federal Law No. 116-FZ "On Industrial Safety of Hazardous Production Facilities" dated July 21, 1997, an entity is obligated to "suspend the operation of a hazardous production facility... in case of newly discovered factors affecting industrial safety."

According to Item 13 of the Federal Rules and Regulations for Industrial Safety "Safety Rules for Hazardous Industrial Facilities of Gas Trunklines" approved by Order of Rostekhnadzor No.517 dated December 11, 2020, operators must comply with the requirements on "providing explosion safety" at the facility. This refers to "prevention of explosions and fires at process equipment; preclusion of explosions and fires within industrial buildings, structures and outdoor facilities.

Therefore, further operation of GCU No. 24 with the faults described above will be in direct conflict with Russian legislation."