VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN

Working Day

25 july, 2011 15:08

Prime Minister Vladimir Putin, in a video conference, takes part in commissioning new power units at the Surgut state district power station No. 2 and the Sredneuralsk state district power station

Prime Minister Vladimir Putin, in a video conference, takes part in commissioning new power units at the Surgut state district power station No. 2 and the Sredneuralsk state district power station
“Russia generated over a trillion kilowatt hours of electricity in 2010. That's 4.3% more than in 2009, practically reaching pre-crisis levels. Power units with a capacity of 3.2 gigawatt were commissioned last year, the largest amount in the past ten years. But we are not going to stop here, and we will continue to move forward.”
Vladimir Putin
During a video link with a ceremony to commission Surgut state district power station 2 and the Sredneuralsk state district power station

Vladimir Putin's introductory remarks:

Good afternoon colleagues,

Today is a pleasant event for us. We have contact with Surgut and the Urals. First, I would like to say that Russia generated over a trillion kilowatt hours of electricity in 2010. That's 4.3% more than in 2009, practically reaching pre-crisis levels. Power units with a capacity of 3.2 gigawatts were commissioned last year, the largest amount in the past ten years. But we are not going to stop here, and we will continue to move forward. Even more ambitious objectives stand before us this year and the next. We have plans to commission about 6.4 gigawatts of power in 2011, and another 7.8 gigawatts next year.

Of course, these are large-scale, ambitious plans which can only be implemented if work on the commissioned facilities takes place with a smooth, continuous rhythm. In particular, I would like to draw attention to projects that we are implementing under power supply contracts. There have been some slight shifts in timing, but I hope there will be no further delays. We are now proceeding according to schedule, and work is moving ahead as planned.

With that, I would like to note that the Surgut state district power station No. 2 that we are discussing today, and where a new power unit will be commissioned, will become the largest and most powerful in the whole of Eurasia. This is, of course, quite a large and powerful enterprise. Further steps to facilitate economic development in general, to solve problems of everyday life, and so on, depend on the implementation of these plans.

There is no need to talk about what the power industry is all about -- it's something that everyone understands. I would like to note that both of these power stations are being constructed with foreign investment, from E.On Energie in one case and Enel in the other. They are our well-known, reliable long-term partners. I would like to congratulate them today on completing a certain stage of work at their facilities.

I’d now like to give the floor to Energy Minister Sergei Shmatko. Would you please tell us about the Surgut state district power station №2?

Sergei Shmatko: Mr Putin, I'd like to report that energy units 7 and 8 of the Surgut state district power station №2, with a total capacity of 800 megawatts, are ready for operation in the United Power Grid. The E.ON concern built these units on time, under its contractual commitments -- during the three years after their commissioning, following the start of work. The total value of the accrued investments is 32 billion roubles.

Mr Putin, the units have been built using the most modern steam and gas technology and with a high-efficiency output of 55%. We believe that these units will make a substantial contribution towards enhancing the reliability of the supply of electricity to the region. This is the domain of the Russian oil industry. It accounts for more than half of Russian oil, and in this respect it is very important to us.

Mr Putin, I’d like to tell you about one additional circumstance. This is an important commission because 70% of the gas in these units will be associated petroleum gas supplied by Surgutneftegaz and Rosneft. This is a major contribution to the programme that the government implemented on the utilisation of this gas.

Mr Putin, the units are ready to take on their workloads. I ask your permission to begin.

Vladimir Putin: Please begin.

(Energy units are launched)

Sergei Shmatko: Mr Putin, the units are operating steadily in the United Power Grid, so allow me to congratulate all those present, and you as well, with a successful launching.

Vladimir Putin: Thank you. I congratulate you as well. Please allow a few words from our partner from E.ON AG.

Bernhard Reutersberg, member of the Board of Management of E.ON AG (via an interpreter): Mr Putin, Mr Shmatko and Governor Komarova. This is a major step not only in the development of our concern, but also in the development of our diverse activities, including those in Russia. The commissioning of these two modern energy units in this important region for the Russian power industry is an important event -- an exceptional one - for our concern.

In 2007 when our concern acquired these facilities, these assets in Russia, we assured the Russian government of our intention to carry out a large-scale modernisation programme. Now that a new unit has been launched at the Shatura district hydro power station, as well as the two units now in Surgut, we have made a major step forward in the implementation of our programme. This autumn we will put one more unit into operation at the Yayvinskaya district hydro power station. Work is already progressing there considerably, so we hope to launch it on time. Once this unit is in commission we will complete the implementation of our programme on upgrading the capacities for gas generation.

At the meeting of the E.ON Board of Directors a few weeks ago we made an important decision to intensify our activities, in particular the implementation of modernisation projects at the Berezovskaya district hydro power plant. We intend to complete these activities by 2015. When this is done, our total investment in the modernisation of the Russian power industry will be 2.8 billion euros. In this way, we will make a major contribution to the development of your power industry, which resonates with the spirit of our concern. Our motto is “Cleaner & Better Energy.”

Mr Putin, you are well aware that our concern has been cooperating with Russia for more than 40 years. Based on this history, we will do everything we can to continue our cooperation in the future. Several weeks ago we made an important step: the rebranding of OGK-4 as E.ON Russia. This is a very important, symbolic step for all employees of this company. They can now consider themselves full members of our concern’s international family. This is a meaningful indication of the importance that our concern attaches to our work, our cooperation with Russia and our activity in it.

Mr Putin, allow me to thank in your presence all those who participated in this project, in particular the Russian participants, for their consistent efforts towards the successful implementation of the project. The German participants have taken away a great deal from this cooperation. We have learned a lot from each other. This is a partnership that enriches all parties involved. I’m very grateful to all participants and to you, Mr Putin, for taking part in this event.

Vladimir Putin: (translated from German) E.ON has truly performed a huge and important job in Siberia today. I would like to thank you from the bottom of my heart, and I wish you success in all your endeavours, particularly in Russia. Thank you very much.

(in Russian) Let’s connect with the next location. Andrei Shishkin, Deputy Energy Minister, at Sredneuralsk state district power station in the town of Sredneuralsk, the Sverdlovsk Region. Please, go ahead.

Andrei Shishkin, Deputy Energy Minister: Mr Putin, colleagues, we are here to launch the newly constructed combined cycle gas unit at the Sredneuralsk state district power station. This is a key event both for the regional power grid and for the Urals power grid in general, which ensures the reliability of this major industrial centre. I should mention that the launching of the units today is the result of decisions adopted at a meeting on the development of Russia’s power industry in February 2010, where discussions on long-term market development were concluded and where the signing of agreements on power delivery began – that is to say, the fulfilment of commitments made by investors working on the Russian energy market.

The new unit is ultra-modern. It includes equipment made by General Electric and Škoda, with a raised performance coefficient and lower specific fuel consumption. It fully meets all environmental requirements, with minimal impact on the environment. The facility was built by Enel under the agreement on power delivery, with some 15 billion roubles invested and spent.

Mr Putin, the unit is ready to be commissioned. Allow me to start the launch.

Vladimir Putin: Go ahead.

Andrei Shishkin: Mr Putin, the unit has started loading and has been synchronised with the grid.   

Vladimir Putin: Congratulations! This is a big step forward for the development of the energy industry in the region. Let our foreign partner say a few words.

Carlo Tamburi, Managing Director of the International Division at Enel (as translated): Good evening, Mr Putin. First I would like to express my gratitude to you for participating in the launch of this unit. I would also like to greet our colleague, Mr Shmatko, and our colleagues from E.ON, who are attending the launch of the Surgut unit. We are proud to be taking part in this event to commission new power units in Russia and to become the owners of privatised power facilities in Russia, which we purchased in 2007 and 2008. Our investment programme has not been stopped with the launch of the unit at Nevinnomyssk state district power station around ten days ago. Today, we are attending the launch of another unit, now at Sredneuralsk state district power station. Despite the economic crisis of 2008 and 2009, we continue to fulfil our commitments.

I should say that we have enjoyed strong support from federal authorities as well as the local government, including the governor and the administration of the Sverdlovsk Region, where another Enel OGK-5 station is located, namely Reftinskaya state district power station. We are performing a huge job there to reconstruct the units.

I am pleased to inform you that we signed an environmental agreement with the Sverdlovsk Region government several days ago. Under this agreement, we are to perform a number of environmental activities. In doing so, we want to express our readiness to provide social support and to help improve the environment.  

I would also like to say that in the near future we will also be engaged in natural gas production. I am referring to gas production on Yamal Peninsula. This is a joint project involving Gazprom, Novatek and Enel. In late 2011 and early 2012, we hope to receive the first gas from this project, with local stations using this gas.

Mr Putin, once again I would like to confirm that our company intends to continue working in Russia, and I would like to thank your for the support you have always provided and will continue to provide in the future.  

Vladimir Putin: Thank you very much. I hope you don’t have any hard feelings for us concerning that small, I would even say token, fine for the slight delay in the launch of the power station. 

Carlo Tamburi: Absolutely not. This is an essential part of the agreements and deals. We were somewhat late, so we had to obtain another permit – and therefore we failed to launch on schedule. This is part of the current bilateral agreement.  

Vladimir Putin: Enel is our reliable, long-time partner. I am pleased to note that the activities both in Urals and Siberia are up to the highest technological standards. At both the locations that are connected in this videoconference a significant amount of attention is being paid to environmental issues and ecological standards. This is extremely important. The Russian government is very pleased that in both cases our partners are engaged both in hydrocarbon production and in power engineering. Efforts are being made to utilise associated gas, which is of great importance for Russia. This is stipulated in the programmes of the Russian government.  

I hope that our partnership will continue. We will provide all manner of support, make no doubt about it. Congratulations and best wishes. Grazie to our Italian partner, and arrivederci. Thank you.