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Power Generation

The Group's core power generating assets are situated in the Southern Federal District of Russia. The LUKOIL Group operates supply power generation facilities with an installed capacity of about 1,100 MW (including the Burgas TPP and that commissioned by the Perm refinery). These power generation assets are primarily located in West Siberia and the Republic of Komi. The key assets and areas of operations of power grid operators, power supply and service companies of the business sector are dependent on the power generation assets and main production and refining areas of the Group.

Power Engineering covers all lines of energy business, from power generation to supply and sales of heat and electricity. The Power Engineering sector, at the core of which are OJSC YUGK TGK-8 assets purchased back in 2008, also includes power and heat generating assets at the Group's refineries in Bulgaria and Romania.

The sector secures reliable supply of heat and power both to cover the Company's in-house needs (generating facilities of the Upstream and 

Downstream) and meet the demand from outside consumers of heat and electric power in the South and North-Caucasian Federal Districts of Russia. That is the reason why the sector has embarked on the following development paths:

  • develop generating facilities that are commercially viable (primarily reconstruction or modernization)

  • develop local generating facilities at the Company's oil producing and refining facilities

  • develop renewables.

* Exclusive of smaller power generation facilities. In 2015 TPP of the Burgas refinery (Bulgaria) was put onto the refinery's books (smaller power generation facility).

* Exclusive of smaller power generation facilities. In 2015 TPP of the Burgas refinery (Bulgaria) was put onto the refinery's books (smaller power generation facility).

COMMERCIAL POWER GENERATION

Since 2011 LUKOIL has successfully completed four projects under the Power Delivery Contract to the wholesale power joint market thus securing return on investment into modern CHP construction projects. In southern Russia the Company commissioned facilities with a total capacity of 949 MW, which exceeds the contractual obligations assumed by the Company by 59 MW. These facilities include CCGT-410 of the Krasondar TPP, CCGT-110, CCGT-235 in Astrakhan and CCGT-135 at Stavrolen. The Company has fully and in a timely manner discharged its obligations towards the government.

The strategy of further commercial power generation is above all focused on stepping up cost-effectiveness and reliability of production facilities. These include projects to shift heat duty from low-efficiency boiler-houses to TPP and their subsequent shutdown. In particular, there are plans to shift heat duty to TPPs in Astrakhan and Rostov-on-Don.

The Group's major renewable energy assets are located in Russia (four HPPs with an cumulative capacity of 297.8 MW, output of 639 GWh). In 2015 the Belorechenskaya HPP reconstruction project was launched, to improve reliability and overall performance.

In 2015 LUKOIL and ERG Renew signed an Asset Separation Agreement whereby LUKOIL fully consolidated the Land Power WPP in Romania (capacity of 84 MW, output of 211 GWh).

The electric power generated by WPP in Romania is supplied to the power grid and paid for based on preferential tariff. All of the generated electricity is sold on general terms, besides "green certificates" that are redeemable on the specialized market are issued, which, consequently, results in a significant economic efficiency enhancement.

The Company's solar energy projects include 9 MW PPP in Romania and 1.25 MW PPP in Bulgaria. These PPPs are built on unused industrial sites of the refinery.

LUKOIL has been developing its in-house smaller power generation facilities to cut back on its electric power costs, inter alia by using associated petroleum gas or products of its conversion, thus minimizing dependence on third party power suppliers. The entity currently continues its power park projects at Yaregskoye and Usinskoye fields.

  • *, MW549
    661
    6716781164
    Power output, GWh22012349286632734193

    For 2015 including the Burgas TPP (257 MW), and the Perm refinery TPP (200 MW).

    * Includes in-house power generation facilities in Upstream in Russia, Downstream and Power Generation of Arkhangelskgeologidobycha.

  • Key performance indicators

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