Russia's state-run energy giant Gazprom and Germany`s RWE energy utilities group agreed on Thursday to jointly build gas and coal-fired plants in Western Europe.
Gazprom and RWE agreed to start consultations on jointly running a company that would comprise the existing and planned power stations in Germany, Great Britain and in the Benelux countries. According to Gazprom`s chief Alexei Miller, the power industry is one of the priorities of Gazprom in Europe. He added that in view of Germany's decision to renounce nuclear power, good opportunities are arising for opening gas and coal-fired plants. The head of the Foundation for Energy Development, Sergei Pikin, shares this opinion. He thinks that a new partnership agreement between the two countries will provide Gazprom with access to Europe's energy industry:
"Gazprom is one of Europe`s largest gas suppliers. In view of this, it would be a wise decision to stick to the following scheme- to deliver gas, to produce electricity and supply it to consumers. As a result, trade volume will get a boost."
Gazprom has long been seeking direct participation in Europe's energy policy but yet has not achieved much on this front. Talks were held with various companies. It appears that Russia's major partner in the Nord Stream project, E.On, does not want Gazprom to have direct contacts with the consumers. But now the situation is changing, offering new chances for business expansion in Europe.
RWE is Germany's second largest energy producer and has assets in other European countries. Its annual revenue in 2010 was more than $4.5 billion. But today the company is having difficult times, with declining revenue and more than $30 billion in corporate debts. Russia's Gazprom is ready to ensure stable gas deliveries to Germany. RWE chief Jürgen Großmann said his company appreciates this and is ready to have a joint project with Russia at home and abroad. The head of the Foundation for Energy Development, Sergei Pikin, continues:
"The German market is predicted to see a stable and successful development in the next ten years. Plans to shut down nuclear stations thus open new horizons for developing renewable sources of energy, and this will require huge amounts of gas and coal."
Gazprom and RWE signed a memorandum which suggests that the sides will have three months of talks before starting the implementation of joint energy projects.
