Chairman’s statement

HMS Group is one of the leading producers of pumps, compressors and oil & gas equipment in Russia and the CIS, and we intend to maintain our market share in the future.

In 2019, HMS Group became one of the suppliers of gas transportation units for GAZPROM. Also, we started to actively engage in LNG projects of PAO NOVATEK as one of the suppliers of compressor-based equipment. We commercialized a new product line of double-entry pumps for water industry, and today we are involved in development of a new product line of water overhang pumps. The company continues to build a sizeable portfolio of orders for nuclear pumps.

In 2019, we continued to build long-term relations with our core customers. So, for example, in autumn 2019 we signed a Memorandum on Strategic Partnership with PAO NOVATEK which will allow us to organize a more effective collaborative work in the field of development of new products for natural gas treatment and liquefaction. In the context of cooperation, HMS Group intends to develop not only compressors but pump-based equipment, like submersible cryogenic pumps for LNG loading, and other diverse oil and gas equipment.

In 2019, HMS Group started active developing of a new activity area – Process Engineering in Oil and Gas Processing. We have built a team of highly-skilled professionals in the field of technological engineering. The company opened a Moscow branch of GTNG, which became the competence center of the institute in the area of oil and gas treatment, and petrochemicals. Consequently, today we can supply not only separate equipment, but complete technological package for oil & gas extraction facilities, petroleum refineries and gas chemical facilities as well. Our unique sci-tech competences allow us to develop and localize the production of the majority of equipment types independently within a short time if requested by our customers, from preparation of design and detailed documentation to construction supervision, installation supervision and commissioning works.

As a part of the import substitution program, HMS Group produced and delivered compressor units for the Yamal LNG project (PAO NOVATEK). These units were developed by Kazankompressormash in sci-manufacturing tandem with NIITurbokompressor involving the use of the domestic technology of natural gas liquefaction named Arctic Cascade and patented by NOVATEK. The scientific novelty of the technology is the use of the ambient temperature in the Arctic climate for natural gas liquefaction process. The experimental industrial line will be implemented at the Yamal LNG project, and its capacity will be 0.9 mln t of LNG per annum. PAO NOVATEK plans to create the whole industry – construction of LNG production lines, and, thanks to successful execution of the project, HMS Group is one of the main developers and producers of innovation-based equipment.

In 2019, HMS developed the technology of production of pump body castings, where ceramic running system with siphon CFF-filtering of liquid melt input was used. This technology will be used in production of AS-1D200-90-A pumps for nuclear power plants, which will have the safety class 2. The produced two units successfully passed all non-destructive control tests.

In the short term, we observe a number of interesting projects to participate in. We will continue playing an active role in implementation of ambitious projects in the oil & gas industry, in projects to develop nuclear and thermal power sectors, and in the national projects of the Russian Federation, primarily, with environmental focus.

Yours faithfully,
Nikolay Yamburenko



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