RWE, Gazprom in talks to forge co-operate on energy projects

Jul 14, 2011, 13:30 GMT

Frankfurt - Leading German power group RWE said Thursday it had signed an agreement with Russian energy giant Gazprom to forge a strategic partnership in the European energy sector.

The memorandum of understanding marks the launch of talks between the two groups aimed at bringing existing or planned coal-and gas-fired power plants in Germany, Britain and the Benelux countries together in a joint venture.

The accord also forms part of the buildup to next week's meeting in the northern German city of Hanover between Chancellor Angela Merkel and Russian President Dmitry Medvedev.

RWE has been forced to restructure its operations in the wake of the move by Merkel's government's to bring to an end nuclear energy in the country.

'In the light of the German government's recent decision to phase out nuclear energy, we see good opportunities to build new modern gas-fired power plants in Germany,' said Gazprom chief executive Alexei Miller.

He went on to say that the agreement will give RWE exclusive rights for negotiations with Gazprom on the implementation of energy projects for a period of three months.

'If this memorandum of understanding is implemented, it can guarantee a secure and competitive gas supply for RWE,' said RWE chairman Juergen Grossmann.

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