OGK-2

OGK-2, also known as Wholesale Generating Company No. 2, is a Russian power-generation company formed in 2005 through the consolidation of five thermal power plants. Its business is centered on the production and wholesale supply of electricity, with associated heat generation at facilities where combined heat and power operations are applicable. The company is part of Russia's centralized electricity system and operates generating assets distributed across several regions, including the Northwest, Central Russia, the Urals, southern Russia, and Siberia. The company's original asset base included approximately 8,700 megawatts of installed capacity. In 2007, the five plants that formed the initial company produced approximately 48 terawatt-hours of electricity. OGK-2 subsequently expanded its corporate and operating footprint through the integration of OGK-6. In April 2010, Gazprom, which was the major shareholder of both companies, announced a plan to combine them. The transaction was implemented through the issue of 26.59 billion new OGK-2 shares, equivalent to approximately 81.2% of its existing share capital, which were exchanged for OGK-6 shares at a ratio of 1.2141 OGK-6 shares for one OGK-2 share. The merger was completed by 1 November 2011. Following the combination, OGK-2 operated a large fleet of thermal generating stations, including Pskov GRES, Serov GRES, Stavropol GRES, Surgut GRES-1, Troitsk GRES, Novocherkassk GRES, Kirishi GRES, Ryazan GRES, Krasnoyarsk-2 GRES, and Cherepovets GRES. The listed stations have a combined installed capacity of approximately 17,750 megawatts. GRES facilities are generally large-scale thermal power stations serving wholesale electricity demand; the portfolio's geographic spread gives OGK-2 exposure to multiple regional electricity markets rather than a single local service territory. OGK-2's strategic importance derives from the scale of its generation fleet and its position within the Gazprom group. The company is a producer rather than a regulated retail utility: its principal role is to generate electricity and heat and sell output into Russia's wholesale power market. Its asset base includes stations using different thermal-generation configurations and fuel arrangements, although the available reference material does not establish a complete current fuel or technology breakdown for every facility. The company is therefore best characterized as a large Russian thermal power producer with a nationally distributed operating portfolio.

OGK-2 was created in 2005 as one of Russia's wholesale generating companies during the restructuring of the country's electricity sector. Five thermal power plants were brought together in a single corporate vehicle, creating a generation platform with approximately 8,700 megawatts of installed capacity. The initial portfolio gave the company a broad operating presence and a scale appropriate to Russia's wholesale electricity market. The plants in the original OGK-2 group generated about 48 terawatt-hours of electricity in 2007. This output demonstrated the importance of the consolidated fleet within the national power system, where large thermal stations provide both baseload and dispatchable generation. The company's operations were focused on electricity production, with heat production also associated with parts of the thermal-generation portfolio. Gazprom became the major shareholder of OGK-2 and also held a major position in another wholesale generator, OGK-6. In April 2010, Gazprom announced a plan to combine the two generating companies. The transaction was structured as a share exchange rather than a simple transfer of individual plants. OGK-2 issued 26.59 billion new shares, representing approximately 81.2% of its pre-transaction share capital. Those shares were used to convert OGK-6 shares at a ratio of 1.2141 OGK-6 shares for one OGK-2 share. The merger was completed by 1 November 2011. It materially increased OGK-2's generating portfolio and established the company as a substantially larger thermal power producer. After the integration, the operating portfolio included stations such as Pskov GRES, Serov GRES, Stavropol GRES, Surgut GRES-1, Troitsk GRES, Novocherkassk GRES, Kirishi GRES, Ryazan GRES, Krasnoyarsk-2 GRES, and Cherepovets GRES. The reference listing gives these facilities a combined installed capacity of approximately 17,750 megawatts. The stations are spread across several Russian regions. Their diversity provides OGK-2 with a national-scale generation footprint and exposure to different regional demand patterns, transmission conditions, and wholesale-market arrangements. The portfolio includes very large facilities, such as Stavropol GRES, Troitsk GRES, Ryazan GRES, Kirishi GRES, and Surgut GRES-1, alongside smaller plants including Pskov GRES and GRES-24 at Novomichurinsk. GRES-24 was merged with Ryazan GRES in November 2008, before the later OGK-6 combination. OGK-2's corporate history is consequently defined by consolidation. It began as a vehicle assembling several thermal power plants, then expanded through the integration of another major wholesale generating company under Gazprom's ownership. Its role has remained that of a large electricity producer within Russia's unified power system, rather than a consumer-facing international energy brand. The available reference material does not provide sufficient current information on management, financial performance, generation mix by fuel, or later corporate developments; those areas require verification from current company filings or authoritative corporate sources.

• 2011

  OGK-6 merger completed

  [1]OGK-2en.wikipedia.org

  The OGK-2 and OGK-6 merger was completed by 1 November 2011 through a large share-conversion transaction.

• 2010

  Gazprom announces OGK-2 and OGK-6 combination

  [1]OGK-2en.wikipedia.org

  Gazprom announced a plan to merge OGK-2 with OGK-6, another wholesale generating company in which it held a major shareholding.

• 2008

  GRES-24 merged with Ryazan GRES

  [1]OGK-2en.wikipedia.org

  GRES-24 at Novomichurinsk was merged with Ryazan GRES in November 2008.

• 2007

  Initial fleet produces approximately 48 TWh

  [1]OGK-2en.wikipedia.org

  The five plants forming the original OGK-2 group generated approximately 48 terawatt-hours of electricity during the year.

• 2005

  Formation through thermal-plant consolidation

  [1]OGK-2en.wikipedia.org

  Five Russian thermal power plants were combined to form OGK-2, with approximately 8,700 megawatts of installed generating capacity.

A major Russian wholesale electricity generator whose competitive identity is based on a geographically diversified portfolio of large thermal power stations and its integration into the Gazprom group.

• Electricity generation · 2005

  Wholesale electricity

  Electricity generated by OGK-2's portfolio of large thermal power stations and supplied into Russia's wholesale electricity system. The portfolio includes stations ranging from several hundred megawatts to more than 3,000 megawatts of installed capacity.

• Heat generation · 2005

  Thermal energy

  Heat associated with the company's thermal-generation operations. The available reference material identifies heat production as part of OGK-2's business, but does not provide a current breakdown of heat output, customers, or individual plants supplying heat.

• Power-generation infrastructure · 2011

  Thermal generation capacity

  A geographically distributed fleet of thermal generating assets, including Pskov GRES, Serov GRES, Stavropol GRES, Surgut GRES-1, Troitsk GRES, Novocherkassk GRES, Kirishi GRES, Ryazan GRES, Krasnoyarsk-2 GRES, and Cherepovets GRES. The listed portfolio has approximately 17,750 megawatts of installed capacity.

• 2010

  Combination with OGK-6M&A

  Background

  Gazprom was a major shareholder of both OGK-2 and OGK-6 and sought to combine the two wholesale generation companies.

  Action taken

  OGK-2 issued 26.59 billion new shares, equal to approximately 81.2% of its existing share capital, for the conversion of OGK-6 shares at a ratio of 1.2141 OGK-6 shares for one OGK-2 share.

  Aftermath

  The merger was completed by 1 November 2011 and expanded OGK-2's thermal-generation portfolio to approximately 17,750 megawatts of installed capacity.

  Source

1. 1OGK-2en.wikipedia.org