TNK-BP secures contracts to supply up to $31 bln in gas to TGK-9, TGK-7
PERM. Nov 21 (Interfax) - Two generating companies that are part of the Integrated Energy Systems (IES) group, TGK-9 and Volga TGK (TGK-7 , signed contracts Tuesday with SL Trading, a company controlled by oil company TNK-BP , for gas supplies to the end of 2030 worth a total of up to $31 billion, the power companies said in statements.
TGK-9 and TGK-7 shareholders will consider the deals at extraordinary general meetings on December 10 and 14, respectively.
It was reported earlier that TNK-BP might secure contracts to supply up to $37 billion worth of gas to the end of 2030 to power companies TGK-9, TGK-7 and TGK-5.
The draft contract with TGK-9 called for the delivery of up to 2.012 bcm of gas in 2013, up to 2.17 bcm in 2014, up to 2.488 bcm in 2015, up to 3.527 bcm in 2016, and up to 3.539 bcm per year in 2017 and thereafter. The contract provides for additional gas supplies of 492 mcm per year in 2017-2030. In 2013-2022, the supplier would pay the buyer a bonus of $172.5 million for taking more than the planned annual amount of gas. The contract is worth up to $16 billion and would also expire at the end of 2030.
At TGK-9 power plants in the first half of 2012, according to the company's financial statement, 36% of gas was supplied by Uralsevergaz, which is controlled by Itera Oil and Gas Company , 20% was supplied by Gazprom units, and 20% was supplied by IES subsidiary LLC IES Trading, which supplies gas under long-term contracts with both Gazprom and independent suppliers. TGK-9 power plants used 7.6 bcm of gas in 2011, the company reported. Therefore, the contract with the TNK-BP subsidiary would cover at least a quarter of the generating company's needs.
The draft contract between TGK-7 and SL Trading called for the delivery of up to 40 million cubic meters of gas in 2015, up to 1.613 billion cubic meters in 2016, up to 1.458 bcm in 2017, up to 1.463 bcm in 2018, up to 1.328 bcm in 2019, and up to 1.334 bcm per year in 2020 and thereafter. The main gas supplier to the power plants of TGK-7 is currently state-controlled Gazprom , which supplied more than 70% in the first half of 2012, according to the power company's financial statement. Based on TGK-7 gas consumption data for 2011, when the company used 9.7 bcm, TNK-BP will supply about a sixth of the generating company's gas needs. The overall value of the deal will total up to $15 billion.
The draft contract between TGK-5 and SL Trading calls for the delivery of up to 259 million cubic meters of gas in 2013, up to 412 mcm in 2014, up to 412 mcm in 2015, up to 820 mcm in 2016, up to 963 mcm in 2017, up to 958 mcm in 2018, up to 1.093 billion cubic meters in 2019 and up to 1.087 bcm per year thereafter. TGK-5 used 3.9 bcm of gas in 2011. Gazprom supplied more than 50% of gas to TGK-5 power plants in the first half of 2012 and IES Trading supplied about 40%, according to the company's financial statement.
TGK-5 shareholders will consider the deal on December 17.
TGK-9 has power plants in the Sverdlovsk Region, Perm Territory and Komi Republic with combined installed capacity of 3.279 GW and 16,866 Gcal.
TGK-7 includes 21 combined heat-and-power plants in the Samara, Saratov, Ulyanovsk and Orenburg regions with combined capacity of 6,879.7 MW and 30,687.2 Gcal.
TGK-5 includes combined heat-and-power plants in Chuvashia and Udmurtia, the Kirov region and Marii-El with installed capacity of 2.467 megawatts. IES owns over 40% of TGK-5, the Russian Federal Property Agency (Rosimuschestvo) owns a blocking stake and the Gazprom group owns 5%.
