Essar Energy PLC ESSR Essar Energy commissions second unit at Vadinar P2

  Essar Energy PLC (ESSR) - Essar Energy commissions second unit at Vadinar P2

RNS Number : 8631Q
Essar Energy plc
12 November 2012




Essar Energy commissions second unit at Vadinar P2 power plant

November 12, 2012: Essar Energy plc [LSE: ESSR], the India-focused integrated
energy company, today announced that it has now commissioned the second of two
255 megawatt units at its Vadinar Phase 2 (P2) power generation project in
Gujarat state.

The coal fired Vadinar P2 plant, with a total 510MW capacity, is now fully
commissioned, providing power and process steam to Essar Oil's nearby Vadinar
oil refinery, which has a capacity of 20 million tonnes per annum/405,000
barrels per day. The addition of coal fired generation will significantly
lower generation costs and result in improved refinery margins. Power will
also be sold to Essar Steel and into the merchant market.

Essar Energy's installed generation capacity now stands at 3,310MW, an
increase of 1,710MW over the past 12 months. Of this, 2,110MW is captive
capacity supplying power to Essar's refinery and steel plants, with revenues
largely dependent on power plant availability rather than power generated.

Naresh Nayyar, Essar Energy chief executive, said: "The commissioning of the
second unit at Vadinar P2 is an important step forward for our power business
and also for the refinery given the positive impact this will have on
margins."



For further information on Essar Energy, please visit www.essarenergy.com

For further information on the Essar Group, please visit www.essar.com

Alternatively, please contact:



Essar Energy

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



Capital MS&L

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 with 3,310MW of installed capacity and projects under
construction to expand its capacity to 6,700MW.

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 the 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.

                     This information is provided by RNS
           The company news service from the London Stock Exchange

END


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