Gazprom Unit Eyes Power Generation Assets in Europe, Asia

Energy | October 7, 2011, Friday // 17:42|  views

Gazprom's power unit has expressed interest in setting up gas-fired power plants in Germany, the UK, and the Benelux countries. Photo by EPA/BGNES

Russian energy giant Gazprom is interested in acquiring power generation assets in Great Britain, Germany and Benelux, according to Denis Fyodorov, CEO of Gazprom EnergoHolding.

Fyodorov told reporters Wednesday that Gazprom considered buying existing plants or buying new ones.

He underscored that the company was ready to acquire full control of the business and pay for the assets in cash.

The head of Gazprom's power unit specified talks on a joint venture in power generation were underway only with Germany's RWE.

Exclusive RWE-Gazprom talks about setting up a joint venture to build and operate gas-fired power plants in Germany, the UK, and the Benelux countries started in July and were initially set to end on October 14, but the end-date was postponed by a year.

Fyodorov further said that the Russian firm was interested in setting foot on the electricity markets in   Japan, South Korea and China, mainly through building gas-fired power stations.

He revealed that Gazprom had also planned to take part in the first stage of the liberalization of Turkey's market, but later decided to wait and see how the process unfolds.

On the domestic market, Gazprom EnergoHolding and the Renova Group have applied to the Federal Antimonopoly Service (FAS) for clearance for a merger of power assets.

Gazprom is to hold up to 75% minus one share and Renova from 25% plus one share.

The deal could create a company controlling a quarter of all domestic power generation.

Gazprom and a number of its main eastern European customers were last week raided by EU competition authorities.

The antitrust probes were said to have had no impact on RWE's joint-venture negotiations with Gazprom.

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Tags: Gazprom, power plant, RWE, merger, electricity prices, anti-trust, competition


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