In a region where the onsite gas business is currently under-developed, Russia’s JSC Cryogenmash has reported a real breakthrough in the country’s industrial gas market.

As part of a long-term agreement with the Seversky pipe production factory (TMK), Cryogenmash has put an air separation unit (ASU) in operation at the customer’s site.

The deal represents the first onsite project developed by a Russian company for technical gases production at the customer’s site. It’s news that also comes at a time when opportunities exist for the industrial gas community to develop the onsite business in Eastern Europe.

The contract for delivery of air separation products for metallurgical facilities support ensures that Cryogenmash, at its own cost and expense, will build the ASU and later operate it – supplying the required amount of technical gases such as oxygen, nitrogen and argon to cover the needs of the factory in Polevskoi town.

The deal has been conducted within the framework of a long-term contract.

“In spite of the fact that on-site work proved to be advanced all over the world, the project developed by JSC Cryogenmash is the first example in Russia where the Russian company independently invests money in construction of air separation products facility,” said Alexei Rubtsov, CEO of Cryogenmash.

“It is an extremely difficult project from the point of view of technology, engineering and investment, and I am glad that we managed to implement it at a high level.”

The volume of Cryogenmash’s investment is thought to have reached around €24m, while the company has fulfilled all works on the development of the modern air separation facility - starting from preparation of the technical & commercial proposal and design works, up to and including the civil works, equipment fabrication, mounting, and putting into operation.

The up-to-date and large-scale air separation plant (КдАдАр-9/3) produces 9000 Nm3/hr of gaseous oxygen, 3300 Nm3/hr of gaseous nitrogen and 500 kg of liquid argon.

Vadim Mikhalkevich, Sales Manager for Technical & Medical Gases at JSC Cryogenmash, explained, “The air separation shop built by Cryogenmash in Polevskoi, can cover current and potential demand of Seversky pipe production factory as to technical gases. The air separation plant capacity allows for the production of additional oxygen, nitrogen and argon to be sold to industrial consumers in the Ural region.”

Presently, Cryogenmash is implementing another three similar projects at different stages of readiness, namely for the Pervouralsk Novotrubny Factory (group CHTPZ), Zlatoustovsky Steel Works (the ESTAR companies group), and the Taganrog Metal Works (ТМК).