Bloomberg News

Gazprom to Join EDF Buying, Building Europe Power Generators

June 22, 2012

OAO Gazprom, the world’s biggest gas producer, agreed with Electricite de France SA to seek joint acquisitions and consider building power generators in Europe.

Gazprom will become the exclusive supplier to any joint power projects under an agreement signed between Alexey Miller, chief executive officer of Gazprom, and EDF CEO Henri Proglio today at the St. Petersburg International Economic Forum, the Russian gas producer and exporter said in an e-mailed statement.

As Russia’s gas export monopoly, Gazprom provides a quarter of demand in Europe, while relying on the market as its main source of profit. The Moscow-based company sought to enter European power generation with Germany’s RWE AG (RWE) before talks failed last year.

Gazprom is looking at buying into some of Enel SpA (ENEL)’s power plants, including in Belgium, and is considering assets owned by Denmark’s Dong Energy A/S, Miller told reporters yesterday at the forum. Talks with the Italian utility may be completed this year, he said.

Gazprom plans to bid for a U.K. power plant put up for sale by EDF Energy Plc, the Sunday Times reported earlier this month. The plant, which supplies 800,000 homes, is at Sutton Bridge in Lincolnshire, and EDF hired N.M. Rothschild & Sons Ltd. to run the auction, the newspaper said.

To contact the reporter on this story: Anna Shiryaevskaya in Moscow at ashiryaevska@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net


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