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Gazprom to Build German Power Plant

Gazprom plans to build a power station in Germany, expanding further into the electricity market with one of its first major projects outside Russia.

Gazprom said Friday that it planned to supply industrial customers and to trade power on Europe's largest power market with the 400 million euro ($541.8 million) gas-fired power plant that it seeks to build in the east German town of Eisenhuttenstadt.

Gazprom plans to build the 800-megawatt power station together with Soteg, Luxembourg's main power supplier, in which the state of Luxembourg, steelmaker Arcelor Mittal and E.ON, Germany's largest utility, each hold about 20 percent.

Both parties, which each hold half of the project, signed a memorandum of understanding in which they agreed to form a joint venture for the project, Gazprom said.

They plan to produce power with the plant from 2010 and have not yet received approval to build the station, a spokesman for Gazprom in London said.

The move comes as Gazprom seeks to expand outside Russia and the gas business, while the German government, as well as the European Union, seek to get more companies to compete on the region's power market.

In Europe, Gazprom is involved in projects such as a Latvian utility and power trading in France as well as Germany, and it has a power-for-natural-gas agreement with the Deeside power station in Britain.

Soteg plans to supply power to industrial customers and distributors in Luxembourg with its share of the power, it said in a separate statement.

Gazprom has been buying up electricty assets from UES at home.


(The Moscow Times 16.iv.07)

 
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