Essar Energy plc [LSE: ESSR], the India-focused integrated energy company, today announced that the first of two 255 megawatt units at its Vadinar Phase 2 (P2) power generation project in Gujarat state has been synchronised with the transmission grid.
The coal fired Vadinar P2 project, with a total 510MW capacity, is one of three power plants being completed by Essar Energy during 2012. The 1,200MW Salaya I project has already been fully commissioned and is commercially operational, while the 1,200MW Mahan I project is expected to be synchronised shortly.
Together these three projects will take Essar Energy’s total installed capacity to 4,510MW.
Most of the power generated by Vadinar P2 will be sold to Essar Oil’s refinery at Vadinar, which will help improve margins at the oil refinery given the relative lower cost of coal-fired generation. Some power will also be sold to Essar Steel and some sold into the merchant market.
Naresh Nayyar, Essar Energy chief executive, said: “The synchronisation of unit 1 at Vadinar P2 is another step forward for our power business and when it is commercially operational, this project will also improve margins at the refinery.”
Work is ongoing to prepare unit 2 at Vadinar P2, which is also 255MW, for synchronisation with the grid.
Mark Lidiard, Director of Investor Relations & Communications +44 20 7408 8714 or +44 7554 440421
Andrew Turpin, Head of Media Relations +44 20 7408 8702 or +44 7827 283659
Richard Campbell +44 20 7307 5334 or +44 7775 784 933
Nicholas Bastin +44 20 7255 5117 or +44 7931 500 066
About Essar Energy
Essar Energy (LSE:ESSR) is a world class, low-cost, integrated energy company with an established track record.
Essar Energy, through its subsidiaries, owns one of India's largest private power producers now with 2,800MW of installed capacity and projects under construction to expand its capacity to 9,670MW.
Essar Energy, through its subsidiaries, owns one of India's fastest growing private sector oil and gas companies with a diverse portfolio of exploration and production assets. The Vadinar refinery, located in Gujarat, is India's second largest private sector oil refinery with throughput capacity of 20 million metric tonnes per annum, or 405,000 barrels per day following the completion in 2012 of expansion and optimisation projects.
About Essar Group
The Essar Group is a global conglomerate and a leading player in the sectors of Steel, Energy (Oil & Gas and Power), Infrastructure (Ports, Projects & Concessions) and Services (Shipping, Telecom, Realty and Business Process Outsourcing). With operations in more than 25 countries across five continents, the group employs 75,000 people and has revenues of over US$ 27 billion.
* * *
This announcement contains certain forward-looking statements, including statements regarding Group's plans, objectives and performance. Such statements relate to events and depend on circumstances that may occur in the future and are subject to risks, uncertainties and assumptions. Although the Group believes that the expectations reflected in such forward looking statements are reasonable, there are a number of factors which could cause actual results and developments to differ materially from those expressed or implied by such forward looking statements, including, without limitation, the enactment of legislation or regulation that may impose costs or restrict activities; the re-negotiation of contracts or licences; fluctuations in demand and pricing in the Oil and Gas, Power and Energy industries; fluctuations in exchange controls; changes in government policy and taxations; industrial disputes; war and terrorism. Further information on the significant risks and uncertainties associated with the Group's business is set out in the Prospectus published on 4 May 2010. These forward-looking statements speak only as at the date of this document. The Group undertakes no obligation to update any forward looking statements whether as a result of new information, future events or otherwise, except to the extent legally required.
These statements (and all other forward-looking statements contained in this document) are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond the Group's control, are difficult to predict and could cause actual results to differ materially from those expressed or implied or forecast in the forward-looking statements.
This announcement does not constitute, or form part of, an offer or any solicitation of an offer for securities in any jurisdiction, or an invitation or inducement to invest in the Group or any other entity and should not be relied upon in any way in connection with any investment decision.