E.ON Russia and Lukoil sign 10-yr contract for gas supply to Yaivinskaya GRES
MOSCOW. June 28 (Interfax) - OJSC E.ON Russia and OJSC Lukoil has signed an agreement for the delivery of associated oil gas between 2013 and 2022, the generating company said in a statement.
Total supply of gas in the agreement comes to 2.24 billion cubic meters with the minimum volume at 1.52 bcm. According to the contract's terms, payment will be made for the actual delivery of gas volume. The deal's value has yet to be made public.
E.ON Russia's board of directors approved the agreement with Lukoil a month ago. The gas will be supplied to Yaivinskaya state district power plant (GRES) (Perm Territory).
E.ON Russia commissioned a new steam-gas unit last year at Yaivinskaya GRES with 400 MWt in capacity. With the new capacity, Gazprom's gas pipeline and branch capacity cannot meet the station's total demand for fuel. Therefore, the station's older blocks had to use coal to fuel operations.
It was earlier reported that Lukoil's gas will cover a small part of the station's demand (this came to around 1.3 bcm) and the contract prices are tied to the cost of fuel as calculated by the Federal Customs Service.
NOVATEK also supplies gas to the GRES, which was signed with E.ON and is valid until 2017.
E.ON Russia has five district power plants with combined capacity of 10,345 MW, including Surgutskaya GRES-2 (capacity of 5,597 MW, uses associated petroleum gas), Berezovskaya GRES (1600 MW; brown coal), Shaturskaya GRES (1493 MW; natural gas), Smolenskaya GRES (630 MW; coal and natural gas) and Yaivinskaya GRES (1,025 MW; natural gas, coal).
Germany's E.ON owns 82.3% in E.ON Russia.
