Gazprom Signs a Deal with ENEL to Buy First Plant in Europe

The Saint Petersburg International Economic Forum hosted a frenzy of agreements between Russian companies and other major players in the gas market, with one of the most notable agreements being reached by Gazprom and Enel.

Russia’s Gazprom has agreed to buy the 405-megawatt Marcinelle power plant in Belgium from Italy’s Enel, marking it first major acquisition in Western Europe. The companies did not disclose any financial details of the deal.

Earlier this month, Gazprom illustrated its new European strategy: a change in its pricing policy and new investments in Europe to maintain its dominant position in the Old Continent. Gazprom has been trying to increase its sway in the European power generation sector, but it did not strike any relevant deals beforehand.

Gazprom’s exports to Europe decreased in recent years, with several countries pushing for increased diversification and more flexible contracts. The US shale gas revolution partly contributed to Gazprom’s shift of fortune, as it affected the prices of carbon worldwide. Carbon replaced gas in many European countries.

Enel CEO Fulvio Conti revealed in March the interest of the Italian company to scale down investments in Belgium.

Other agreements

Gazprom signed also a document with GDF Suez, ‘stipulating cooperation between the companies in exploring the possibility of the Nord Stream gas pipeline expansion,’ reads a note released on Friday.

Russia’s Rosneft signed agreements with China National Petroleum Corporation, Eni, ExxonMobil, General Electric, Marubeni, PKN ORLEN, Saras, Sanors, Sodeco, Statoil, Trafigura, Vitol and Croatia's Ministry of Economy.