German power group RWE AG (RWE.XE) is in preliminary talks with Polish state-controlled gas monopoly Polskie Gornictwo Naftowe i Gazownictwo (PGN.WA) to build two, 400 megawatt gas-fired power units in Poland, the daily Parkiet reports Tuesday, citing unidentified sources.
According to the daily, the project could cost about 6.3 billion zlotys ($3.09 billion) and would likely be located near gas deposits developed by PGNiG in western or southern Poland.
The RWE-PGNiG joint venture could be structured along the same lines of an agreement between RWE and Polish coal mining group Kompania Weglowa, Parkiet says, in which RWE is taking a 75% stake and providing the bulk of the financing, while Kompania Weglowa is to get 25% while guaranteeing long-term coal supplies.
In a separate interview with Parkiet, the head of RWE's Polish unit Filip Thon didn't confirm the talks with PGNiG, but said his company is interested in building between 2,000 MW and 3,000 MW new capacity in Poland.