| 2006-01-20 |
Îïóáëèêîâàíî: RosBusinessConsulting |
ITERA Oil and Gas Company will participate in Sverdlovsk Region Energy Program. The decision was made yesterday at the meeting of Eduard Rossel, Sverdlovsk Region Governor, and company’s management. According to the document, several mini heat power stations are to be created in the region shortly to solve the energy deficit problem. As such, ITERA develops its energy business and expands its presence in the Urals, as Gazprom does.
ITERA Oil and gas Company is the second (after NOVATEK) independent gas producer in Russia. The 9 months’ revenue amounts to RUR 21.4 bln, sales profit – RUR 1.8 bln, net profit – RUR 746.2 mln. Since July, 2005 99.99% stake are owned by ITERA Holdings Ltd (Cyprus) and the sole minority shareholder is Valery Otchertsov, Chairman of the Management Board. The Company’s main activity in the domestic market is gas supply to Sverdlovsk Region.
The long-term partnership plan was discussed yesterday at the meeting of Sverdlovsk Region Governor and management of ITERA and “Uralsevergas”, ITERA subsidiary. The meeting resulted in decision to involve ITERA into Sverdlovsk Region Energy Program. As Eduard Rossel told, over the last five years, the region has completely exhausted the power generation capacities, inherited from the Soviet period. Energy consumption for the same period grew half as much and, according to the latest information it is expected to double. Over 60% of generating facilities are 40-60 years old.
“Today, ITERA is ready to add 300 kilometers of gas pipelines to those 400 kilometers that are constructed annually by the region itself”, - Eduard Rossel said. “Sverdlovsk Region Gasification Program will be implemented in 3 to 4 years; total gas pipelines length will be 3500 kilometers.”
However, the gas pipeline construction is not the only item of the agenda.
“Currently, Sverdlovsk Region Power Security Strategy is being worked out that will develop small-scale power generation”, - Eugene Harlamov, Sverdlovsk Region Governor’s press secretary informed. According to him, the document is aimed at stimulating construction of cogeneration facilities that produce electricity and heat for certain municipalities and industrial enterprises.
“Such facilities return investments quickly, they generate rather cheap electric power and remain independent of RAO “UES of Russia”, - Mr.Harlamov explained.
ITERA confirmed the intention to construct several mini heat power plants in the region and currently the company is negotiating with various authorities.
In the end of November 2005, Uralsevergas, an ITERA subsidiary, agreed to develop Sverdlovsk Region energy projects jointly with Intertechelectro, the URAL and Volga Region Intraregional Distribution Network Company (IDNC). The designers and gas experts intend to develop FEED package, Feasibility Study, Project Financing, Integrated Project Management and provision of gas to the new generating facilities. Acting through “Sverdlovenergo” the URAL and Volga Region IDNC will be grid connecting the constructed facilities and reserve the required capacity at power hubs.
As Yuri Saakyan, General Director of Natural Monopolies Problems Institute, explained to RBC daily, the agreements had been achieved thanks to the personal relationship between ITERA management and Eduard Rossel, Sverdlovsk Region Governor, and as a result of long-term partnership between the company and regional administration in gas supply.
The company is the only gas supplier to Sverdlovsk Region, whose economy is mainly based on energy resources.
“ITERA decided to develop distributed power generation projects after Gazprom’s similar intention to consolidate Moscow Region generation”, - Andrey Novikov, a Megatrastoil analyst says. According to him, small scale power generation for the oil and gas company is a way to make a loop from natural gas production to power supply.
“Usually, such a strategy increases operational profitability”, - Mr. Novikov said.
RAO “UES of Russia” is not afraid of competition with gas companies.
“We welcome companies that are ready to invest into power generation, especially in the regions who although do not lack energy for the moment but can become energy deficient in the near future”, -Pavel Polner, TGK-9 PR Director said.
Olga Rink, “Energomash” PR Director, said that small-scale power generation project development is only gaining speed in Russia, so, “there is enough space for everyone”.
Besides, as Pavel Polner stated, the development of mini power plants will help industrial enterprises to avoid cross-subsidizing by getting rather cheap energy from “their own plant”.
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