Russian state-controlled natural gas giant OAO Gazprom (GAZP.RS) and Danish state-owned energy company DONG Energy A/S are in talks on joint investments in power plants in Northwestern Europe, the Russian company said Sunday.
Russian state-controlled natural gas giant OAO Gazprom (GAZP.RS) and
Danish state-owned energy company DONG Energy A/S are in talks on joint
investments in power plants in Northwestern Europe, the Russian company said
Sunday.
The two companies "agreed on a plan of action with regard to further
cooperation in
Northwestern Europe
concerning existing gas-fired power plants and the construction of a new,
modern steam-gas plant," Gazprom said in a statement.
The plan calls for drafting of project documentation and a financial
feasibility study for Gazprom's participation in the projects, the statement
said.
Russia--a supplier of close to a quarter of Europe's gas needs--is seeking to
expand its presence in the European downstream segment and has shown particular
interest in investing in power plants. In December, talks were terminated
between German utility firm RWE AG (RWE.XE) and Gazprom on a power production
joint venture in
Western Europe
.
"Cooperation with DONG has very good prospects," said Gazprom Chief
Executive Alexei Miller.
The two companies signed a memorandum of understanding in April last year. A
Gazprom executive said in November that the two companies were considering two
joint energy projects, but provided no further details.
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