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TNK-BP to Process Gas to Electricity
TNK-BP and WGC-1 have agreed to create a venture based on Nizhnevartovsk GRES power plant and intend to seal a final contract in mid-July. The project will be more profitable for TNK-BP than buying new stocks of generating companies of RAO UES of Russia, the analysts speculate, reasoning that TNK-BP will use the power plant to utilize accompanying gas, which it currently burns.
TNK-BP intends to complete creating the venture with WGC-1 (Wholesale Generating Co.-1) based on Nizhnevartovsk GRES by the year-end, TNK-BP Vice President Oleg Nam said. The venture is being set up to construct an 800MW-power unit of GRES by 2010 that will operate on accompanying gas of TNK-BP. The project budget is estimated at $680 million.
TNK-BP will get 30 percent in the project and WGC-1 will have 70 percent in it. In March, the Evaluation Committee of RAO UES of Russia approved the worth of the power plant to be contributed to the project at $950 million. As to TNK-BP, it is expected to provide roughly $500 million, which is $150 above the initial plans.
Prior to agreeing on the venture’s creation, the parties entered into a contract for accompanying gas supplies, sources with WGC-1 said. TNK-BP will funnel 2.77 billion cu meters of gas from its fields to Nizhnevartovsk GRES till the year-end. Though the sources preferred not to specify the price for accompanying gas, a source with TNK-BP said it equals the price for the natural gas, i.e. 950 rubles/1,000 cu meters in Nizhnevartovsk region.
www.kommersant.com
All the Article in Russian as of June 21, 2007
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