Domestic NG equipment solutions reduce the industry’s dependency on western technologies

7 october 2016

Domestic NG equipment solutions allow the industry to reduce its dependence on western technologies. Participants of the round table on the economic and technological capabilities of the regions with regard to implementing the import substitution policy held at the Saint Petersburg International Natural Gas Forum talked about innovations in the industry, implementation of the import substitution policy and the problems companies are running into. “Despite some problems, import substitution continues apace; many companies not only meet the domestic demand but bring their new high-tech products to the global market,” believes the Analytical Center expert Alexander Kurdin who moderated the discussion.

Deputy Commercial Director of IMS Group Aleksey Minkevich talked about the research and development in exploration geophysics that his company has been carrying out and about how in 2017 it plans to present an innovative experimental unit for processing liquefied natural gas. In addition, IMS is already present in the international market where it offers ultrasound flow meters in Western Europe on a try-and-buy basis: you try the unit and, if you like the results, you can buy it; thus, prospective customers can learn about and test the system before committing to it.

NPF Geophysics OJSC, the largest R&D and production company in Russia and the CIS, is successfully designing equipment that is as good as the best foreign units are. The latest offer from the company is the LWD Vector universal remote drilling system. “This innovative solution is intended for monitoring trajectories and geophysical research when drilling oil and gas wells. The remote system is versatile in the sense that the same well modules can be used in drilling components of varying diameter,” says NPF Geophysics’ Chief Geologist Vyacheslav Beresnev.

The experts believe that, despite some problems, import substitution has been going on quite successfully, with many companies not only managing to meet domestic demand but also bringing  new high-tech products to the international market, which is testimony to the competitiveness of Russian products.

Earlier in 2016 the Analytical Center conducted a survey of fuel and energy equipment manufacturers and companies operating in related areas that looked at 38 companies that have production operations in 42 regions in Russia. “Most of the companies surveyed noted that there was potential for import substitution in their sector and said the import substitution policy was a good incentive for innovative development,” the study conducted on the basis of the survey concluded. Among the most important strategic goals for their development, the companies cite expanding the market for their products, developing their own technology and modernizing existing production processes. At the same time, the experts note that the companies want to manufacture competitive products, for the domestic market in the first place. The vast majority of the respondents, mostly in oil and gas mechanical engineering and in cable manufacturing, have plans to carry out investment projects to modernize or expand production as well as to offer new products. At the same time, the respondents noted that they were not prepared to stop using imported products altogether at various stages of their production processes. “About a third of the companies depend on imports for 20-50% of their tools and materials, production equipment and spare parts. 40% of the respondents said imported technologies, raw materials and component parts accounted for no more than 20% of their production processes,” the survey notes.