Hungarian oil and gas company MOL Nyrt. (MOL.BU) and Czech power firm CEZ A.S. (BAACEZ.PR) have established CM European Power International B.V., the first entity of MOL and CEZ under a joint venture agreement signed Dec. 20 2007.
CM European Power has a registered equity of EUR8.3 million.
MOL and CEZ signed a strategic alliance agreement in December 2007. The joint venture, in which each party has 50% equity interest, equal voting rights and similar split of operational decision making, will focus on gas-fired power generation and related gas infrastructure in four countries of Central and South Eastern Europe, including Slovakia, Hungary, Croatia and Slovenia.
The first major investment will be the construction of combined cycle gas turbine plants at the refineries of the MOL group in Bratislava, Slovakia and Szazhalombatta, Hungary. At each location the installed capacity will be 800 megawatts.
In addition, in Bratislava, the current thermal plant will be modernized and its capacity increased to 160 MW.
The expected investment cost in both projects will be approximately EUR1.4 billion.