TNK-BP might secure contracts to supply up to $31 bln of gas to IES power cos
MOSCOW. Nov 13 (Interfax) - The shareholders of two generating companies controlled by billionaire Viktor Vekselberg's Integrated Energy Systems Holding (IES) - Volga TGK (TGK-7) and TGK-9 - will in December consider signing contracts with TNK-BP's SL Trading for gas supplies totalling up to $31 billion in the period to 2030, statements from the power companies show.
TGK-7 shareholders will vote on the deal on December 14 and TGK-9 shareholders will vote on December 10.
The draft contract between TGK-7 and SL Trading calls 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.
In 2017-2030, the contract allows for the delivery of up to 2.554 bcm of additional gas per year. In 2015-2022, the supplier would pay the buyer a bonus of $40 million for taking more than the planned amount of gas.
The overall value of the deal will total up to $15 billion, and the contract would be in effect from the time of signing to the end of 2030.
The contract with TGK-9 calls 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.
The price of 1,000 cubic meters of gas in both planned contracts in the period to 2023 would be equal to the Federal Tariff Service price for the given region, and the price for additional gas would be equal to the FTS price minus 3.5%. After 2023, the price is to be negotiated by the parties.
Offers by the generating companies to buy additional gas are irrevocable offers. The supplier can accept an offer for any year by sending the buyer an acceptance no earlier than three years prior and no later than 180 days before the start of the year in which gas is to be supplied, the power companies said.
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 if the contract is signed.
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.
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-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.
