Today during a pre-New Year telephone conference moderated by Alexey Miller, Chairman of the Gazprom Management Committee at the Company's headquarters in Moscow the second power generating unit was brought onstream at Kaliningrad CHPP-2.

Among the Gazprom executives attending the event at Kaliningrad CHPP-2 were Valery Golubev, Deputy Chairman of the Management Committee, Kirill Seleznev, Member of the Management Committee – Head of the Gas and Liquid Hydrocarbons Marketing and Processing Department, Viktor Ilyushin, Member of the Management Committee – Head of the Department for Relations with Regional Authorities of the Russian Federation as well as heads and experts from Gazprom energoholding and representatives from contracting agencies.

Commissioning of the second power generating unit at Kaliningrad CHPP-2 (capacity – 450 MW) built at Gazprom's expense solved the urgent problem of energy undersupply in the Kaliningrad Oblast, significantly increased the reliability of energy supply to the region and created opportunities for power exports.

 “Gazprom accomplished this large-scale investment project in the power industry within a short timeframe. This is indeed a vital project for the national power industry and for the Russian Federation as it solves the problems of energy security, stability and reliability of energy supply to Russia's westernmost region – the Kaliningrad Oblast,” noted Alexey Miller.

Background:

The Russian Government Directive No. 672 of October 12, 2007 introduced changes in the Federal Target Program for the Kaliningrad Oblast development with regard to the energy security assurance in the region. To resolve this problem, construction of the second power generating unit was stipulated at Kaliningrad CHPP-2.

On September 24, 2008 the Investment Contract was signed between Mezhregionenergostroy (Gazprom Group) and INTER RAO UES. Taking part in the ceremonial signing of the document were Alexey Miller, Chairman of the Gazprom Management Committee and Evgeny Dod, Chairman of the INTER RAO UES Management Board. Pursuant to the Investment Contract, completion of work and commissioning of the power generating unit were scheduled for December 2010. All the operations were performed on schedule.

The Power Machines Company is the main equipment producer for the second power generating unit of Kaliningrad CHPP-2. The unit is comprised of two GTE-160 turbines and a T-150-7.7 steam turbine.

All the equipment items were delivered and installed in strict compliance with the construction schedule.

A gas lateral was built from the Minsk – Vilnius – Kaliningrad gas trunkline to Kaliningrad CHPP-2 in order to feed the second power generating unit with gas. Construction was carried out within the right-of-way of the existing gas lateral to the first power generating unit at Kaliningrad CHPP-2. Construction and installation operations were performed from November 2009 through to November 2010.

The gas lateral was tapped into the gas trunkline on November 30, 2010. Gas supply was started on December 7, 2010.

Gazprom invested RUB 865 million in constructing the gas lateral.

Two overhead 330 kV (kilovolt) power supply lines were constructed to convey the electricity generated by the second power generating unit at Kaliningrad CHPP-2. The overall length of these two power lines is some 50 kilometers. The high-voltage power lines were built between January 2010 and December 2010.

Gazprom allocated RUB 1.5 billion for the high-voltage power lines construction.

In order to connect the second power generating unit at Kaliningrad CHPP-2 to the power grid, Mezhregionenergostroy and Yantarenergo signed a Grid Connection Agreement. In pursuance of this Agreement, Yantarenergo reconstructed the Severnaya and Tsentralnaya substations installing new grid connection equipment as well as protection and automation equipment. The grid connection costs amounted to RUB 945 million.