| 2008-11-13 |
Published: Published by The KommersantÚ („Ú“) Information House, Nizhni Novgorod |
ITERA to construct co-generation power plant near Nizhni Novgorod
Itera, an oil and gas company, is going to construct a co-generation power plant with a capacity of 900 mW in the Nizhni Novgorod Region by 2012. The construction site will be in the Kstovski Region. The RTS-holding by Victor Vekselberg tried to qualify for the same site with a similar project some time ago. KES valued the plant as being worth approximately Rubles 40 billion. Experts believe it would be easier for Itera, as a natural gas seller, than for KES-holding to implement the project.
Yesterday, the Investment Council under the Governor of the Nizhni Novgorod Region adopted a decision to prepare a land plot with an area 600 thousand square meters for a co-generation power plant to be constructed near Fediakovo village in the Kstovski Region. As „Ú“ has been informed in Itera Oil and Gas Company, the project would be implemented by OJSC Verkhnevolzhskaya Generating Company (Upper Volga Generating Company) established jointly with the government of the Nizhni Novgorod Region. Completion of the plant with a capacity of 900 mW is planned by 2012. They in Itera did not disclose the investment amount. They explained this figure would be determined more or less by the end of 2008.
Itera Oil and Gas Company was established in 2002. It sells own and purchased natural gas. It is part of Itera International Group of Companies established in 1992. Itera International Group of Companies is among the largest independent producers of natural gas in Russia (Igor Makarov, Chairman of the Group’s Board of Directors, is its largest shareholder). Its net profit was Rub 2.93 billion and its sales revenue was Rub 29.7 billion in 2007.
OJSC Verkhnevolzhskaya Generating Company was registered in Nizhni Novgorod in April of 2008. The core business of the Company is construction of thermal and other type power plants. According to SPARK-Interfax, as in the mid-2008 Itera-Electra owns 74.99 per cent the registered capital, while 24.001% per cent belongs to Nizhnegorodski Proizvodstvenno-energeticheski Complex (Nizhni Novgorod Production and Energy Complex), a state-run enterprise in the Nizhni Novgorod Region. Its registered capital is not disclosed.
Itera is going to construct the co-generation power plant near the undeveloped Gorki Nuclear Power Plant on the border of the Kstovski Region and Nizhni Novgorod. They in OJSC Tekhnopromexport (specialized in construction of thermal power and electric power generating facilities; with the turnover of Rub 35 billion in 2007) said that the feasibility study for the co-generation plant on that site was completed in early 2008: the Company won the Project’s General Contractor Contest held by OJSC Territorial Generating Company # 6 (TGC-6). CJSC Complex Energy Systems (KES-holding), the principal owner of TGC-6, announced in August of 2008 it gave up the project because of the differences with the local authorities on registration of the land plot title: KES gave up construction of the plant worth about Rub. 40 billion in favor of raising the capacity of Novogorkovskaya co-generation plant it owned from 305 mW to 605 mW by 2012.
KES-holding did not comment on Itera intention, yesterday. They reminded they gave up the project not only because of the land plot title problem, but also because of the low profitability of the project. Experts believe it would be easier for Itera than for KES-holding, to implement the project, because Itera was the natural gas seller. A Kommersant source in the industry believes Itera is sure the project is going to be a success not only because it is ready to provide its own feedstock gas, but also because it has an opportunity to sell thermal energy as well. «The future power plant is particularly intended to supply heat to the Priokski Region of the town. Commissioning of a large housing estate to ensure demand on thermal energy is expected soon», — the „Ú“ interlocutor in the Nizhni Novgorod Region Government says. According to an expert opinion, the regional authorities should act as guarantors for full and timely commissioning of the housing estate.
Daniel Guteyev, an electric power industry analyst of IB KIT Finance, believes Itera is quite capable of meeting the goal within the announced time-frame, provided that the financing and good relationship with the authorities are there: «A power generating unit with a capacity of 450 mW was being constructed for Mosenergo (Moscow Energy) in Moscow for about two years. This is why the facility in question can be commissioned by 2012, provided that the speed of construction is increased».
Top of page
