Gazprom and DONG Energy developing investment rationale for power generation projects in Northwestern Europe
Following the Memorandum of Intent signed on April 26, 2011, Gazprom and DONG Energy held lengthy negotiations and agreed on the action plan to further develop cooperation between the two companies in Northwestern Europe at the existing gas-fired power plants as well as at a brand new and modern combined cycle power plant to be constructed.
The action plan stipulates development of the design documents and the financial feasibility study for Gazprom to take part in these projects.
“Power generation is one of our core businesses in Europe. Gazprom shows a particular interest in partnering with European energy majors on the existing power generation projects and in constructing new gas-fired power plants as well. Cooperation with DONG Energy is very promising,” said Alexey Miller.
DONG Energy is one of the leading energy groups in Northern Europe. The Kingdom of Denmark owns a 76 per cent stake in the company.
DONG Energy produces oil and gas in Norway and Denmark, holds exploration licenses in Greenland, the Faroe Islands and in the West of Shetland, UK.
DONG Energy has put gas-fired power plants into operation in the UK, Norway and the Netherlands. DONG Energy has been operating gas-fired power plants in Denmark for several years now.
On the renewables side, DONG Energy has built more large-scale offshore wind farms than any other developer in the world.
In 2006 Gazprom and DONG Energy entered into the Agreement on Russian gas supplies to Denmark via the Nord Stream pipeline.
In October 2009 Gazprom and DONG Energy inked a contract on the supply of additional amounts of Russian gas to Denmark via Nord Stream.
In April 2011 Gazprom and DONG Energy signed the Memorandum of Intent to establish cooperation in gas-fired power generation.