POWER AND HEAT GENERATION
In December 2007, MOL Group, together with its strategic partner CEZ, the Czech Energy Company, signed a joint venture agreement to carry out three major investments in the Group’s Duna and Bratislava refineries: two combined cycle gas turbine technology units (CCGT), each with an installed capacity of 860 MW, which would result in a net electrical efficiency of 58% and thirdly, the revamp of the existing thermal power plant (TPP) in the Bratislava refinery.
The amount of energy produced will be able to create sufficient steam and energy sources to meet Duna and Bratislava refinery requirements. In addition, as a result of this strategic cooperation's original objectives, not only will MOL Group will be enabled to enter and gain significant share of the very attractive power market but further synergetic benefits could add value to the new value chain.
In 2011, the joint venture of MOL Group and CEZ made a significant progress for the implementation of the combined cycle gas turbine technology unit (CCGT) at Duna refinery. The plant received all the permits necessary to start construction in the first half of the year. Then the first phase of the investment started in October as the main contract was signed. The second phase, the construction is subject to an additional investment decision of MOL Group and CEZ. This decision is expected to be made by the end of the first half of 2012.
With two years operational experience, the underground gas storage facility, with a total mobile gas capacity of 1.9bn m3 (of which 1.2bn m3 is strategic and 0.7bn m3 commercial) has proved to be a reliable part of Hungary’s domestic gas infrastructure which guarantees security of supply. In its second full-length commercial period the facility’s injection and withdrawal units ran smoothly.
MMBF has succeeded in delivering satisfactory business solutions to challenges caused by changes in the domestic regulatory environment with regard to the strategic underground storage business. The risks associated with the activity have increased slightly, the changes have had no effect on the commercial storage business. The company’s ability to generate cash flow remains secure.
MMBF’s financial status also remains stable. The redemption of one of its investment loans, which was issued by the European Bank for Reconstruction and Development, with a value of EUR 200m, is on schedule.