SIBUR sells TGK-16 genco back to TAIF Group

KAZAN. May 2 (Interfax) - SIBUR has sold back to Tatarstan's TAIF group the JSC TGK-16 generating company that it acquired in October 2021 as part of a deal to purchase TAIF's petrochemical assets, a source familiar with the details of the transaction told Interfax.

SIBUR and TAIF closed the deal on the sale of the TGK-16 enterprise for the ownership in the TAIF group, the press service of SIBUR petrochemical holding confirmed the information to Interfax.

Selling back TGK-16 seems to be the most effective solution for all shareholders in current conditions, given that the power industry is a non-core business for SIBUR, and TAIF is historically familiar with "the assets and landscape" of Tatarstan's energy market, a SIBUR representative said. SIBUR views the deal "not as a split, but as a continuation of close interaction and cooperation" and expects to maintain the level of integration between TGK-16 and SIBUR's Tatarstan-based enterprises.

"The companies [SIBUR and TAIF] have reached all the necessary agreements on heaty supplies to enterprises in Kazan and Nizhnekamsk under long-term contracts, which is one of the key conditions for the stable and undisrupted interrupted operations of both the petrochemical enterprises and a generating company," SIBUR said.

TGK-16 has installed capacity of 1,669.6 MW for heat and 6,136 Gcal/h for heat, according to its website. Its plants are fueled mainly by gas. The genco supplies electricity and capacity to the domestic market, and heat in the internal Russian republic of Tatarstan. It includes the Kazan CHPP-3 and Nizhnekamsk combined heat and power plants.

In October 2021, as part of a deal to purchase the petrochemical assets of the TAIF group, SIBUR acquired Kazanorgsintez, Nizhnekamskneftekhim and the energy company JSC TGK-16, with branches in Kazan and Nizhnekamsk, namely the Kazan CHPP- 3 and the Nizhnekamsk CHPP.

Kazanorgsintez and Nizhnekamskneftekhim are delivering projects to develop their own generation.