Russian oil major Lukoil's board of directors has approved the acquisition of an 82.3% controlling interest in electricity generator, TGK-8, by a Lukoil Group company. The transaction will be paid for in Lukoil treasury shares and cash.
TGK-8 is one of the major gas consumers in Russia with annual consumption reaching six billion cubic meters. Its power plants are located in the Astrakhan, Volgograd and Rostov regions, the Krasnodar and Stavropol districts, and the Republic of Dagestan.
By acquiring a controlling stake in TGK-8, Lukoil expects significant synergies through natural gas supply to TGK-8 plants from the its gas fields located in the Northern Caspian and Astrakhan regions, which will reportedly allow the company to reach efficient gas prices.
The Lukoil Group’s strategic development program for 2008-17 envisages the establishment of a separate power engineering business unit. This segment is being considered as one of the major factors that will contribute to the company’s capitalization growth in the future.