June 18, 2008

UES WGC-1 Commences Construction of 450MW Unit at Urengoyskaya TPP

Russian electricity company UES's subsidiary WGC-1 has commenced the construction of a new 450MW generating unit as part of the Urengoyskaya thermal power plant in the Yamalo-Nenets Autonomous Okrug in Russia's Tyumen region.

The construction of the Urengoyskaya thermal power plant (TPP) is one of the key projects envisaged in the WGC-1's investment program and is also included in UES's Goelro-2 program.

After this new unit is brought on line, the capacity of the Urengoyskaya TPP is expected to grow 18-fold, to help increase the volumes of electricity and heat supplied to Yamalo-Nenets.

The Urengoyskaya TPP is the only stationary thermal power plant in Yamalo-Nenets. It is located in the permafrost zone in the northern Tyumen region, where there are a lot of oil and gas-producing and refining entities. This region reportedly suffers from severe power shortages, while demand continues to grow rapidly.

The power unit construction will be implemented in two phases with the first 320MW unit to be brought on line in 2009. In 2011, the power plant will reach the target capacity of 450MW.

Equipment for the unit will be manufactured by Russian power engineering firm Power Machines. In March 2008, WGC-1 and Power Machines entered into a contract to build two gas turbines of 160MW capacity each. The price tag of the deal is around RUB3 billion.