Russia’s Inter RAO seeks gas turbines deal with GE by Oct

KRASNOYARSK (Russia), Mar 31 (Reuters): The chief executive of Russia's Inter RAO said on Saturday the energy holding hoped to reach a deal with General Electric Co by October to produce powerful gas turbines in Russia, either as a joint venture or by buying a license from GE.

Russia, which does not currently produce mid- or high-power gas-fired power turbines, recently launched a 1.9 trillion rouble ($29 billion) programme to modernise a quarter of its power generation, or 41 gigawatt of coal- and gas-based plants.

It is seen as a rare opportunity for Western producers amid falling global demand for gas turbines in recent years, but Moscow has said investors must only use fully localised - domestically produced - equipment as part of a local content push.

Inter RAO CEO Boris Kovalchuk said the modernisation programme would open a large market for GE for 10 years.

"We hope to reach all the agreements with them within half a year," Kovalchuk told reporters during a conference in the Siberian city of Krasnoyarsk.