Gazprom signals European generation ambitions

• 12 years ago (2011-06-21)
• Junior Isles

Europe 1061 North America 998 Nuclear 640

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Russia's Gazprom will attempt to gain entry into European generation markets after Germany's recent decision to phase out nuclear power, its export chief said.

Germany's gas needs are expected to rise as a result of the new plans, which are scheduled for completion in 2022.

"To replace atomic power generation with gas, investment needs to begin now," head of export Alexander Medvedev said. "We don't intend on just being a gas supplier. We have accumulated a lot of experience in processing gas into power."

Gazprom currently has a generation unit, Gazprom Energo, which operates thermal generators around Russia. Medvedev said Gazprom would pursue discussions on joining gas-fired power plant projects with E.On, Wintershall, RWE and independent power producers.

Russia has not disguised its strategic ambitions to tighten its supply grip on European markets by winning access to end users of its raw materials. This forthright attitude has elicited concerns from some that Russia could acquire excessive influence over European economies.

"I do not think it [Gazprom's participation in European power generation] would be good for German consumers. The more Gazprom is in the market, the higher the price and the lower the competition is," Mikhail Korchemkin of East European Gas Analysis said.

Wintershall told reports that it sees many gas-fired power station projects being revived in the short-term as Germany phases out its atomic power generation by 2022.