German utility RWE AG and Russia's state-controlled natural gas giant Gazprom are in discussions to forge a joint venture for building and operating new power plants across Europe, AP reported. RWE said its CEO Juergen Grossmann and Gazprom's Alexei Miller signed a memorandum of understanding Thursday in Rome to build a "strategic partnership in the European power industry." RWE, which has been financially shaken by the German government's decision to phase out nuclear power by 2022, is going into exclusive negotiations with Gazprom over the next three months on how to form a joint venture to combine existing, or newly built gas and power plants in Germany, Britain and Belgium, the Netherlands and Luxembourg. Grossmann said the joint venture with Gazprom, if implemented, could secure "a safe and competitive gas supply" for RWE. No figures or details of ownership were given for the possible joint venture. Miller said the prospects for the construction of new modern gas-fired power plants in Germany were good following the government's decision to phase out nuclear power. Gazprom again made clear it seeks to expand in Europe to strengthen its position. "The power industry is one of the priorities of Gazprom in Europe," Miller said. The Russian giant currently accounts for 15 percent of the world's natural gas output and 18 percent of global natural gas reserves. In a separate release, RWE said it sold a 74.9 percent stake in Amprion GmbH, the company running its 6,800 mile (11,000 kilometer) high voltage grid in a "further step to improve its debt situation." The stake, which is currently valued at ?1.2 billion, was bought by investors from the insurance industry and regional utility companies. RWE did not disclose the transaction's exact price but said the sale will lessen its need to invest in upgrading the grid by about ?2.5 billion over the next ten years. -- SPA
