Moscow saw today the inauguration of the Gazprom Energy House office center located at: 101 (bld. 3) Vernadsky Prospect (former headquarters of RAO UES of Russia).

The Gazprom Energy House will host power generation companies of Gazprom Group – Gazprom energoholding, Mosenergo, OGK-2, OGK-6, TGC-1, Gazprom energo, Mezhregionenergosbyt and Gazenergoprombank.

Taking part in the inauguration ceremony was Alexey Miller, Chairman of Gazprom Management Committee.

“Gazprom consecutively steps up its strategy aimed at establishing itself as a leader among global energy companies. We are convinced that this cannot be achieved without vertical integration and interdisciplinary approach that will unite for instance, oil and gas, gas and power generation sector.

Electric power stations consume 37 per cent of the total Russian gas, while the efficiency coefficient of most of them is fewer than 35 per cent. Low gas prices make gas saving unprofitable, and the valuable energy carrier and feedstock actually goes down the drain!

Russian energy sector is in great need of modernization. Gazprom has assumed this task – new generation facilities are being built with the use of cutting edge technologies and existing electric power stations are being intensively re-constructed.

It should be noted that Gazprom accounted for more than 90 per cent of all the electric power generation capacities commissioned in 2008. Between 2009 and 2013 Gazprom is going to invest in the order of RUB 250 billion in the construction and modernization of electric power stations. This is an unprecedented rate for the national power industry. Gazprom is currently the largest and most reliable investor in Russian power generation sector.

Gazprom’s energy strategy stipulates creating an inextricable chain – from gas production to electric power supply. Gazprom has initiated developing a corporate energy supply company. Mezhregionsbyt has already turned into Russia's largest electric power supplier.

Today we are witnessing a crucial event. Consolidation of Gazprom’s energy assets has been put into practice!” stated Alexey Miller.

Background:

In April 2007 Gazprom Board of Directors endorsed Gazprom’s Power Generation Strategy. The power generation business expansion in Gazprom Group stipulates, in particular, acquisition of stakes in power generation companies, construction of new power generation facilities and development of power distribution and power grid sectors.

Between 2007 and 2008 in the result of the power industry reform in Russia and participation in the issuance of additional shares by power generation companies Gazprom Group largely achieved its strategic goals of entering into the power generation business.

Gazprom Group owns the following major assets in the national power generation sector: Mosenergo (53.47 per cent), TGC-1 (28.7 per cent), OGK-2 (56.6 per cent) and OGK-6 (60 per cent).

In August 2008 Gazprom Board of Directors adopted the decision to consolidate the shares of TGC-1 and Mosenergo by transferring them to Gazoenergetichskaya Kompaniya (Gazprom energoholding since May 2009), Gazprom’s wholly owned subsidiary.

Gazprom energoholding largest assets are currently as follows: 53.47 per cent of shares in Mosenergo (TGC-3), 28.7 per cent of shares in TGC-1, 8.34 per cent of shares in INTER RAO UES, 10.49 per cent of shares in Holding MRSK, 10.49 per cent of shares in RAO Eastern Energy Systems, 3.97 per cent of shares in FGC UES, 99.2 per cent of shares in TSENTRENERGOHOLDING which, inter alia, owns 44.4 per cent of shares in OGK-2 and 42.9 per cent of shares in OGK-6.

Mosenergo is the world’s largest heat power producer. Its installed capacity exceeds 12,000 MW and 34,167 Gcal/hr.

TGC-1 is a unique power generation company in the North-Western Russia. Its installed capacity exceeds 6,278 MW and 15,000 Gcal/hr.

OGC-2 is one of the leading power generating companies in terms of gas domination in the fuel mix. Its installed capacity is about 8,695 MW.

OGK-6 is one of the leading power generating companies in terms of coal domination in the fuel mix. Its installed capacity exceeds 9,052 MW.

Gazprom energo is a fully-owned subsidiary of Gazprom – operates low- and medium-voltage power supply networks owned by Gazprom Group subsidiaries.

Mezhregionsbyt is Russia's largest electric power supplier with the cumulative turnover exceeding RUB 100 billion and cumulative power output – some 85 kWh per annum.