Gazprom and E.ON have signed a memorandum of understanding on joint construction and operation of a gas-turbine electric power plant in the area of Lubmin in Germany.
According to the memorandum of understanding, the parties will make the final investment decision in 2009. The planned capacity of the gas-turbine electric power plant will be 1,200MW. The facility is scheduled for start-up in 2011. Gazprom and E.ON will set up a joint venture on a parity basis to implement the project.
Gazprom and E.ON have a long-standing history of co-operation in long-term gas supplies and see this project as an important element of collaboration on sales markets for Russian gas. The Gazprom group will be engaged in the whole added value chain: from gas deliveries to the sales of generated electricity.
For E.ON the investment forms part of the company’s E60 billion investment program for new markets, modern gas and power infrastructure and efficient, forward-looking power station technologies. E.ON said that it is thus helping to reduce carbon dioxide emissions and to protect the climate.