E.ON AG (EONGY), the world's largest investor-owned utility by market value, Friday said it plans to jointly build and operate a gas-fired power plant with Russian natural gas monopoly Gazprom OAO (GAZP.RS) in Lubmin, northeastern Germany.
Both companies Friday signed a memorandum of understanding covering the construction of a 1.2 gigawatt gas-fired power plant, which could start operating in 2011, E.ON said.
The final investment decision will be made in 2009.
E.ON didn't provide any estimate for the project's investment volume, but gas-fired power plants of a similar size usually require investment of around EUR1 billion.